The CEO of AI infrastructure provider CoreWeave, Michael Intrator, has publicly dismissed three major risks that Wall Street analysts believe could "derail" the AI sector in 2026. Speaking at the World Economic Forum, Intrator addressed concerns about smaller firms running out of capital, disruptive tech breakthroughs reducing compute demand, and accelerated depreciation of expensive chips, labeling them all as "manageable."
Intrator argued that CoreWeave's diversified client base—spanning startups to enterprises—and its reliance on long-term contracts with credit-worthy clients insulate it from sector-wide turbulence. He stated that bankruptcies among smaller players are a natural part of industry maturation and that CoreWeave's broad portfolio ensures stability even if some clients fail.
On the threat of efficiency breakthroughs, like those from DeepSeek, Intrator emphasized that innovation fuels demand for compute rather than eroding it. He noted CoreWeave's focus on helping customers adopt new hardware generations seamlessly.
Regarding chip depreciation, the CEO highlighted that long-term contracts of five to six years demonstrate sustained compute value. He explained that older GPUs, such as A100s and H100s, are repurposed for secondary tasks, creating a managed lifecycle. "We have seen repeated repurchase of A100s and H100s again and again from new clients with new use cases," Intrator said.
Despite this confidence, CoreWeave's stock (CRWV) is down approximately 90% from its 52-week high. Wall Street maintains an "overweight" rating on the stock with a mean price target of $120, suggesting nearly 30% upside from current levels.
