AI Only Seems to Stretch So Far Before Snapping Back

EyePoint Pharmaceuticals (EYPT) fell 85% to $0.4 after a failed drug trial, laying off 53% of its workforce. CoreWeave (CRWV) dropped 0.4% to $59.25 due to debt concerns, with analysts cutting price targets. Eos Energy (EOSE) declined 0.5% to $1.72 after lowering revenue expectations.

CoreWeave shares fell 0.4% on Oct. 19, despite a 1.1% rise in the Nasdaq Composite. The stock saw significant intraday volatility and had dropped 25.2% the prior week. Goldman Sachs upgraded CoreWeave to 'buy,' citing its advantage in scarce computing capacity. The company's 2031 bond yield fell to 15.13%. CoreWeave reported $35.6B in total debt and $558M in quarterly debt interest expense.

BNP Paribas cut CoreWeave's (CRWV) price target from $169 to $117, citing concerns over investor confidence and rising financing costs. The company's P/S ratio is 4.26, below its historical median, and its GF Score is 8/100, indicating financial health challenges. Insider selling totaled $5.88 billion. CoreWeave operates in cloud infrastructure for AI, with a market cap of $33.71 billion.

CoreWeave's bonds entered distressed territory, with yields 10 percentage points above government bonds, causing its stock to drop over 20%. This has raised concerns about AI infrastructure financing, with Chamath Palihapitiya questioning the sector's private credit bubble. Other AI companies also saw share declines, highlighting investor reassessment of debt loads and balance sheets.

Intel requested an FCC waiver to continue using foreign-made automated guided vehicles (AGVs) in its US chip factories, citing a lack of domestic alternatives and potential production disruptions. The FCC banned such equipment in July 2026 for national security reasons. Intel's petition, filed in October 2026, seeks clarity and approval for modifications, arguing that replacing AGVs could take years. The company also notes that any interruption could impact US chip output and national security.

Intel (INTC), AMD (AMD), and Micron (MU) rose in premarket trading on Oct. 19, rebounding from a selloff. Intel gained 4%, AMD and Micron each advanced 3%. CoreWeave (CW) climbed 6% after a Goldman Sachs upgrade. Intel's Q3 results are due Oct. 29, with JPMorgan maintaining an $85 price target.