JPMorgan Defends CoreWeave's Business Model as Bond Market Reprices AI Infrastructure Debt

JPMorgan analysts say investor concerns about CoreWeave's mounting debt and rapid cash burn are likely overdone, arguing the company's expansion-driven financing needs reflect strong project economics rather than structural business weaknesses. The Los Angeles-based GPU cloud provider, which reported $2.6 billion in second-quarter revenue and a 59% adjusted EBITDA margin, has seen its stock fall 43% since August as bond yields exceeded 15%, sparking broader questions about the sustainability of aggressive capital spending in AI infrastructure.