Despite the significant drop in the stock price of CoreWeave last week following the Democratic Party's overwhelming victory in the elections, CEO Mike Intrator stated that the company is not concerned about the upcoming political changes.
During the company's financial report conference call on Tuesday evening, in response to questions about the new pressures after the election, Intrator said: "We do not expect to be affected by this significant regulatory change that has already occurred. We believe that what has happened is indicating how we should proceed with construction. We hope to build in a responsible manner."
Please watch at 9:30 a.m. Eastern Time for CoreWeave CEO Mike Intrator to appear on CNBC television station to discuss the company's latest financial report. You can watch the live broadcast in real-time through CNBC + or CNBC Pro.
Before Intrator made the aforementioned remarks, CoreWeave announced a year-on-year revenue increase of 168%, exceeding expectations, and raised its performance targets for 2026. Following the release of the financial report, the stock rose in after-hours trading; previously, investors had pushed the stock price down by 40% over the past month, so this financial report brought some relief to the market.
Rising interest rates and an unfavorable political environment have sparked concerns in the market that the boom in artificial intelligence may cool down, and that companies such as CoreWeave will find it difficult to raise funds.
According to the data from Ballotpedia, in the mid-term elections on November 3rd, out of 41 voting proposals in 10 states, 40 supported stricter regulations for data centers. The Democratic Party gained control of both the Senate and the House of Representatives, and also won the gubernatorial elections in key states with significant artificial intelligence infrastructure, such as Texas, Ohio, and Georgia. In these states, the winning candidates all supported some form of restrictions on new data centers.
In a report after the election, JPMorgan Asset Management wrote that data center projects in 2028 and beyond are “most vulnerable to impact” and “face greater uncertainties in terms of approval, power supply, and financing.”
However, CoreWeave indicates that the company has not slowed down its pace. The company stated that it still expects to achieve 1.85 gigawatts of available power by the end of 2026 and has raised its annual capital expenditure target to $37 billion to $39 billion, which represents a 155% increase based on the mid-range estimate. Analysts surveyed by Visible Alpha previously estimated it to be $37.69 billion.
Intrator said, "We are very confident in our project reserves." He added that the message conveyed by voters would not pose any obstacles, as the company has always placed emphasis on "being a good neighbor."
Intrator indicates: "We believe that this represents an opportunity for us to continue to expand our business scale under the new political realities."
