CoreWeave, a cloud computing company backed by Nvidia, priced its initial public offering at $40 per share Thursday, below its previously expected range.

Nvidia (NVDA) stock declined over 3% in premarket trading on Monday, closing the first quarter on a sour note. Investor sentiment weakened amid

Shares of Nvidia (NASDAQ: NVDA) were among the losers last month as the artificial intelligence (AI) chip leader pulled back along with the broad market in March. There wasn't any major news that weighed on Nvidia,

CoreWeave's stock plunged nearly 10% on Monday, dropping below its IPO price, raising concerns about AI-focused IPOs in a volatile market.

CoreWeave, Inc.'s IPO highlights waning AI hype and market risks like NVIDIA reliance and high cash burn. Click here to read more on the new CRWV stock issue.

CoreWeave is targeting a valuation of up to $32 billion on a fully diluted basis in its U.S. initial public offering, as the Nvidia -backed startup bets on strong demand for generative artificial intelligence.

Among the concerns is CoreWeave’s heavy reliance on Microsoft ... which offers access to data centers and high-powered Nvidia chips for AI workloads, will also issue $350 million in shares ...

CoreWeave's push to be an AI hyperscaler amid debt challenges and declining GPU prices. See why we advise caution for CRWV's IPO investors.