“Stay Away From CoreWeave”: Huang’s Scandal Puts Nvidia’s $6.3 Billion Backstop in Focus Gian Estrada Wed, November 11, 2026 at 11:44 AM EST 4 min read CRWV +25.90% NVDA +4.18% CRWD +3.66% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
D.A. Davidson's Gil Luria told investors to stay away from CoreWeave after Nvidia's board opened an investigation tied to CEO Jensen Huang.
Nvidia's $2 billion is already paid in, and a CEO change alone wouldn't cancel its $6.3 billion capacity order, which has its own conditions.
CoreWeave expects about $9 billion in customer prepayments and deposits over the next three months.
The bigger risk is the interest bill: $846 million in the third quarter, guided above $1 billion for the fourth.
CoreWeave (CRWV:NASDAQ) just beat its own guidance, and a well-known analyst still told investors to stay away. His worry is Nvidia (NVDA:NASDAQ) CEO Jensen Huang.
On Nov. 8, Nvidia's board opened an independent investigation into reports that a woman Huang had an affair with passed information to Chinese intelligence. Huang admitted the affair in an email to employees that day. CrowdStrike co-founder Dmitri Alperovitch said on CNBC's Closing Bell on Nov. 10: "I see no way in which Jensen can survive this as CEO of NVIDIA."
On the Nov. 11 episode of Prof G Markets, Gil Luria, head of technology research at D.A. Davidson, was asked whether CoreWeave is a stock to avoid now that it has to raise so much more money. He said shareholders had counted on Nvidia to keep stepping in, then added:
"NVIDIA didn't bail them out. Jensen Huang bailed them out. If he's not there, that supposed input goes away. So, yes, absolutely stay away from CoreWeave."
That's a lot to pin on one executive, especially one who told Bloomberg on Oct. 15 that he saw no need for Nvidia to backstop CoreWeave.
Luria is right about how close the ties are. CoreWeave's GPU fleet runs on Nvidia chips, and Nvidia invested $2 billion at $87.20 a share in January 2026, according to a January 2026 filing. A September 2025 filing also shows a capacity order with an initial value of $6.3 billion: Nvidia has to buy residual capacity CoreWeave's own customers don't use, through April 13, 2032. That obligation depends on delivery and service-availability requirements, and either side can terminate for a material breach or insolvency.
That floor under demand matters because CoreWeave pays for growth up front, and analysts expect its revenue to grow more than eightfold from 2025 to 2028:
See the full breakdown of Buy, Hold, and Sell ratings on CoreWeave, along with Wall Street's revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See CoreWeave's Analyst Ratings
Counting leases, CoreWeave's total debt went from $11.9 billion at the end of March 2025 to $66.2 billion at the end of September 2026, according to TIKR data:
Over the same stretch, quarterly interest more than tripled, to $846 million:
That's more than double the third quarter's $379 million of adjusted operating income, and management guides fourth-quarter interest to $1.05 billion to $1.15 billion. Lenders already charge for the risk: CoreWeave's unsecured bonds yielded about 16% on Nov. 9.
Nvidia's $2 billion is paid in, and replacing Huang wouldn't cancel the order on its own. A successor could decline new support.
CoreWeave argues it won't need it. Third-quarter revenue was $3.66 billion, up 168% from $1.37 billion a year earlier and above the top of guidance. CEO Michael Intrator pointed to "approximately $9 billion in customer prepayments and deposits expected in the next three months alone." On the call, he added: "We will not use the unsecured debt market to fund our business at current yields, nor do we need to."
The catch: CoreWeave also set up a program to sell up to 35 million new shares, so shareholders may fund part of the build-out through dilution.
CoreWeave is a risky stock with or without Huang, and Nvidia's contracts don't change that. What would worry me is adjusted operating income still trailing an interest bill heading past $1 billion a quarter. If Huang leaves, the next raise gets a little harder. The fourth-quarter report, due in early 2027, will show whether operating income is catching up.
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR's valuation model and see what CoreWeave could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It's free to use.
