The artificial intelligence (AI) boom has caused a huge “euphoria” across the industry, with the benchmark S&P 500 index rising to levels near 7,000.
Still, some Wall Street experts continue to advise caution, citing three major risks that could “derail” the industry in 2026.
- SMEs lacking capital
- Disruptive technology advances that reduce computing demands.
- Depreciation of expensive chips accelerates
However, CoreWeave CEO Michael Intrater dismissed each risk in a recent article. CNBC In an interview, he called the company “manageable” and argued that the company’s diverse customer base, long-term contracts and adaptive strategy position it for growth.
As of this writing, CoreWeave stock is down an astonishing 90% from its 52-week high.
Why small business bankruptcies aren’t a concern for Coreweave stock
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Speaking with CNBC this morning at the World Economic Forum (2026), Intrater freely agreed that bankruptcy is indeed a real risk for some small companies in the AI infrastructure space.
“It is fully expected that some companies will go bankrupt or be acquired by other companies, but this is a natural progression of new industries.”
He said CoreWeave mitigates this risk by selling to a broad portfolio of customers, from startups to large enterprises.
Even if some fail, others will endure and the entire market will not collapse. He believes that’s reason enough to stick with CRWV stock in 2026.
Why technology breakthroughs aren’t such a worry for CRWV stock
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Michael Intrator also dismissed the idea that technological advances, such as DeepSeek’s efficiency breakthroughs that have dramatically reduced computing demands, would destabilize CRWV’s core business.
CoreWeave mitigates this risk by building its business around “long-term contracts with creditworthy customers.”
He added that the company is working hard to help customers seamlessly adopt new generations of hardware.
Overall, Intrater thinks CRWV stock is worth holding for the long term, as innovation drives demand rather than eating away at the Nasdaq-listed company’s business.
Why depreciation is not as much of a concern for CoreWeave as many believe
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Finally, CoreWeave’s CEO dismissed the risk of “chip depreciation” and subsequent expensive upgrades as market noise.
The only measure that matters to him is what customers are willing to pay. Long-term contracts spanning five or six years demonstrate that computing retains its value beyond initial deployment.
Old GPUs are reused for secondary tasks, ensuring continued utility.
“We have seen the A100 and H100 being repurchased time and time again by new customers with new use cases,” he said, emphasizing that depreciation is not a liability but a managed lifecycle.
Note that Wall Street currently has a consensus “Overweight” rating on CRWV stock, with an average price target of around $120, indicating near 30% upside potential from here.
