CoreWeave plunged again on Friday, down about 12%, bringing its losses for the week to more than 20%. The bigger concern isn’t just the share price: yields on the company’s bonds briefly climbed to around 15%, while credit default swaps also moved into stress territory. The market is asking: What happens when you build up a pile of GPUs with borrowed money and that money gets more expensive?

At its core, this is about discount rates and the pace of debt repayment. AI infrastructure burns through cash quickly, while profits take time to materialize. When leverage is high, both valuations and bond markets can seize up. Other neocloud companies and the data center supply chain are also coming under scrutiny, and the anxiety is spreading quickly.

My own rule of thumb: You can still be bullish on the theme, but keep names with weak financing structures and high interest-rate sensitivity in a separate bucket and manage their position sizes carefully. Don’t translate “AI has long-term potential” into “go ahead and pile into this leveraged stock.”

For now, it’s enough to keep an eye on two things: whether bond market pressure eases, and whether big tech companies scale back their capital expenditure plans.

It’s not that I’m bearish every day. It’s just that on days like these, being able to sleep well matters more than rushing to buy the dip. You can keep the theme in your portfolio; how much you invest is up to you.

Take a longer-term view: volatility shakes out weak hands, which can make things easier later. But during that process, people who can’t stomach it will get out first—that’s perfectly normal.

Put simply, the scariest thing over the weekend isn’t a small dip; it’s everyone discovering at Monday’s open that the narrative has changed again. If you’re heavily invested, first get a clear picture of your leverage and concentration. Don’t just grit your teeth and rely on gut instinct.

Don’t treat one day’s gains or losses as a verdict. Friday’s close is just a snapshot. What really matters is keeping an eye on interest rates, oil prices, and whether the next round of earnings delivers.

When it comes to trading, I prefer scaling in and out: if you want to add to your position, split it into several purchases; if you want to reduce it, don’t sell everything at once. The market likes to punish overconfidence.

The above is for reference only and does not constitute investment advice.

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