D.A. Davidson’s Gil Luria warns CoreWeave equity could go to zero if AI spending slows

CoreWeave has spent the AI boom as one of its loudest beneficiaries. On October 14, 2026, D.A. Davidson analyst Gil Luria offered a much less flattering read: the company’s equity could be worth nothing if the AI spending cycle cools. Markets took the hint, sending CoreWeave (NASDAQ: CRWV) shares down more than 15% the same day. The math Luria doesn’t like Luria’s warning comes down to a basic spread problem. By his account, CoreWeave borrows money at roughly 9%. The returns it earns on that capital look far thinner. Luria estimated the company’s return on invested capital at around 1%, or 4-5% at best. Debt is the other half of the problem. CoreWeave’s borrowings now sit close to $50 billion, according to the research findings. Luria cast the company as a potential example of the sector’s excesses. He called it a possible “poster child for bad behavior” in the AI infrastructure trade, pointing to its heavy leverage. “Poster child for bad behavior” — Gil Luria, D.A. Davidson Despite the gloomy framing, Luria kept a Neutral rating on the stock. He flagged the company’s thin margins and dependence on debt financing as red flags, stopping short of a formal sell call. Bond markets are ...