CoreWeave Data Center Delays: Market Misattribution Impacts APLD Stock

This analysis is based on the CNBC “Squawk on the Street” interview [3] on November 11, 2025, where Jim Cramer questioned CoreWeave (CRWV) CEO Michael Intrator about data center delays that led the company to lower its 2025 revenue guidance. Cramer specifically attributed the delays to Core Scientific (CORZ), describing it as “a failed Bitcoin miner that came out of bankruptcy” and noting affected sites in Texas, Oklahoma, North Carolina, and Georgia [1][3]. Despite this clarification exonerating Applied Digital (APLD), all three stocks experienced significant declines, suggesting market misattribution and sector-wide selling pressure in the AI infrastructure space.

The immediate market impact was substantial across all three companies:

experienced the most severe reaction:

• Stock plunged 16% on November 11, closing at $88.39 [0][3]
• Additional decline of 4.8% on November 12 to $87.33 [0]
• 5-day decline of 15.26% [0]
• Company lowered 2025 revenue guidance to $5.05-$5.15 billion, below analyst estimates of $5.29 billion [3]

also saw significant losses:

• Stock fell 10% on November 11, closing at $17.32 [0][3]
• Additional decline of 6.5% on November 12 to $16.19 [0]
• 5-day decline of 17.29% [0]

experienced collateral damage:

• Stock declined 5.86% on November 11, closing at $28.57 [0]
• Accelerated decline of 9.26% on November 12 to $26.07 [0]
• 5-day decline of 12.07% [0]

All three stocks experienced elevated trading volumes, with CRWV seeing 76.5M shares traded on November 11 versus its 30.1M average [0].

Despite the guidance cut, CoreWeave’s underlying fundamentals remain strong:

• Q3 2025 revenue of $1.36 billion, up 134% year-over-year [3]
• Revenue backlog nearly doubled to $55.6 billion [1][3]
• CEO emphasized only “one data center” was experiencing issues out of 41 in their portfolio [3]
• Company deployed “boots on the ground” to accelerate progress at affected facilities [3]

The Reddit post’s thesis that APLD was unfairly punished appears well-founded:

• APLD operates in AI data center space but was not mentioned in reports about CRWV’s delays [1][3]
• APLD’s decline accelerated on November 12 (-9.26%) after the CNBC interview aired, suggesting continued market confusion [0]
• The company had announced a $2.35 billion debt offering on November 10 for its Polaris Forge campus expansion, which could have contributed to selling pressure [1][4]

CORZ’s situation adds complexity to market interpretation:

• CoreWeave attempted to acquire CORZ for $9 billion earlier in 2025, but shareholders voted against the deal [3]
• CORZ emerged from bankruptcy and transitioned from Bitcoin mining to AI infrastructure [1]
• The company’s sites in Texas, Oklahoma, and North Carolina were specifically mentioned by Cramer as experiencing delays [3]

1. Sector-Wide Contagion Risk
   : The incident demonstrates how AI infrastructure stocks exhibit high correlation, with company-specific issues triggering sector-wide selling regardless of direct involvement.

2. Information Asymmetry Impact
   : Despite clear attribution to CORZ by Cramer [1][3], APLD continued to decline, suggesting either market inefficiency or other underlying concerns.

3. M&A History Complicates Interpretation
   : The failed CRWV-CORZ merger [3] creates additional complexity in how investors interpret the relationship between these companies.

1. Execution Risk Premium
   : AI infrastructure stocks appear to carry significant execution risk premiums, with investors quick to penalize any operational delays.

2. Supply Chain Vulnerability
   : The incident highlights investor concerns about single points of failure in data center supply chains.

3. Growth Stock Volatility
   : High-growth AI infrastructure stocks demonstrate extreme sensitivity to operational news, creating both risk and opportunity.

1. Execution Risk
   : CoreWeave’s ability to resolve delays without customer loss remains uncertain [3]
2. Reputational Damage
   : Potential impact on CRWV’s ability to secure new contracts
3. Market Mispricing
   : Continued confusion may lead to prolonged mispricing of APLD shares

1. Quarterly Guidance Revisions
   : Watch for further adjustments to 2025 guidance in upcoming earnings
2. Customer Retention
   : Monitor for announcements of contract cancellations or delays
3. Supply Chain Diversification
   : Track CRWV’s efforts to reduce dependency on single providers

1. Mispricing Correction
   : APLD may represent an opportunity if the market has overreacted to unrelated news
2. Sector Consolidation
   : Operational challenges could accelerate M&A activity in the AI infrastructure space
3. Diversification Benefit
   : Companies with diversified supply chains may command premium valuations

Based on the CNBC interview [3] and subsequent market analysis, CoreWeave CEO Michael Intrator faced questioning from Jim Cramer about data center delays that led to reduced 2025 revenue guidance. Cramer specifically attributed these delays to Core Scientific (CORZ), not Applied Digital (APLD) [1][3]. Despite this clear attribution, APLD stock experienced significant declines, suggesting market misattribution or broader sector concerns.

CoreWeave maintains strong underlying fundamentals with $55.6 billion in backlog and 134% year-over-year revenue growth [1][3], though the company faces execution challenges at a single data center provider. The incident highlights the operational risks and high correlation in AI infrastructure stocks, where company-specific issues can trigger sector-wide selling pressure.

Investors should monitor CoreWeave’s ability to resolve delays, potential customer impacts, and whether the market corrects the apparent mispricing of APLD shares. The high volatility in this sector reflects both the tremendous growth opportunities and significant execution risks facing AI infrastructure companies.