Shares of data center player CoreWeave (CRWV) fell over 10% in early trading after reporting solid earnings, but weak guidance. Investors were hoping for a blockbuster report to keep the AI chip stocks running. They did not get it.
The major culprit for CRWV was slightly lower margins and lack of energy (power). It appears that multiple data centers are being put on hold because there is not enough power in the grid to sustain them. This could mean a sector wide repricing of chip stocks, as energy from nuclear power will take years to come on line.
As a day trader, I am focusing on the $85 level. This is the pivot low from both August 20th, 2025 and September 5th, 2025. If CRWV flushes into that level, a quick bounce is likely.
As a swing trader, I am looking closely at the $60.75 level. This was the pivot high from April 2nd, 2025 and the breakout point on May 13th, 2025. As a technical level, this should yield a multi-week bounce opportunity.
As a long-term investor, I have no buy level for CRWV. With an AI bubble, I likely would not touch CRWV until it falls to new all-time lowers and shows a major daily or weekly reversal candle.
Source: https://www.fxstreet.com/news/trading-levels-coreweave-crwv-collapses-on-weak-guidance-202511111547
