HSBC Projects CoreWeave Investment Returns Below Borrowing Costs
Photo: TokenPost
HSBC expects CoreWeave’s AI infrastructure investments to earn less than they cost to finance from 2026 through 2030, raising questions about the value of further expansion. The bank has a reduce rating on CoreWeave and a $39 share price target. That target is 36% below the stock’s Oct. 19 close. HSBC analyst Abhishek Shukla projects an average 8.9% return on invested capital over the five-year period, below the company’s borrowing cost. Under that projection, additional investment would cost more to finance than it would earn.
Source: TokenPost
