Morgan Stanley Cautions About Increasing Risks in Software Lending
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Source: Barron's
S&P Software Index Decline: The S&P Software Index has experienced a significant decline of 22% this year due to the impact of AI.
Software Loan Price Stability: Despite the drop in the software index, the price of software loans has only decreased by approximately 3%.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CRWV?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CRWV
Wall Street analysts forecast CRWV stock price to rise
25 Analyst Rating
12 Buy
13 Hold
0 Sell
Moderate Buy
Current: 105.890
Low
68.00
Averages
123.23
High
180.00
Current: 105.890
Low
68.00
Averages
123.23
High
180.00
About CRWV
CoreWeave, Inc. is a cloud infrastructure technology company. The Company offers the CoreWeave Cloud Platform, which consists of software and cloud services that deliver the automation and efficiency needed to manage complex artificial intelligence (AI) infrastructure. Its CoreWeave Cloud Platform is an integrated solution that is purpose-built for running AI workloads such as model training and inference. Its solutions include infrastructure services, managed software services, and application software services. Its Infrastructure Services provide its customers with access to advanced graphics processing unit (GPU) and central processing unit (CPU) compute, highly performant networking, and storage. Its Managed Software Services include CKS, a flexible virtual private cloud and a bare metal service that runs kubernetes directly on high-performance servers. Its Application Software Services build on top of its infrastructure and managed software services, integrating additional tools.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NBIS Stock Surges as Market Cap Nears CoreWeave
- Significant Stock Surge: NBIS shares jumped 11% in overnight trading, bringing its market capitalization closer to that of market leader CoreWeave, indicating strong investor confidence that could drive further price increases in the coming days.
- Institutional Investment Increase: Situational Awareness LP disclosed ownership of 12.41 million Class A shares of Nebius, representing a 5.6% stake worth $2.6 billion, making it one of the largest institutional investors in the company, signaling optimism about its future growth.
- Market Sentiment Shift: On Stocktwits, sentiment for NBIS shifted from neutral to bullish, with message volume surging 212% in the last 24 hours, reflecting a significant increase in investor attention that may attract more capital inflow.
- Surging Demand for AI Infrastructure: As an emerging neocloud company, Nebius has gained traction after securing large cloud contracts with Microsoft and Meta Platforms, positioning itself to benefit from the rapid growth in demand for AI infrastructure, thereby solidifying its market position.
See More
US Stocks Rebound in Q1, Led by Tech Sector Growth
- Q1 Earnings Surge: As of the end of March 2025, the S&P 500 saw earnings growth exceeding 28%, marking the fastest year-over-year growth since Q4 2021, with 84% of its constituents surpassing analyst expectations, indicating strong market recovery potential.
- Tech Sector Dominance: Companies like Meta and Alphabet made the largest contributions to market improvement, with the 'Magnificent Seven' achieving an average Q1 profit growth of 63%, significantly outpacing the 17% growth of the other 493 stocks, underscoring the tech industry's critical role in overall market performance.
- Market Risks and Imbalance: Despite impressive Q2 gains, the 20% year-to-date rise in energy stocks accounts for most of the market's strength, revealing an imbalance that investors should approach with caution due to potential risks.
- Dependency on Future Growth: Analysts project a 23% earnings growth for the S&P 500 in 2026, yet the tech sector's future growth heavily relies on the performance of other tech firms, where any failure could undermine revenue expectations, adding uncertainty to the market outlook.
See More
Risks and Opportunities Behind Market Rally
- Market Rally Analysis: Since late 2025, the S&P 500 has risen over 9%, recovering from a 5% decline at the start of the year due to military conflicts in Iran, indicating a strong market rebound; however, this rebound is uneven, prompting investors to exercise caution.
- Earnings Growth Highlights: According to FactSet, 84% of S&P 500 constituents exceeded analyst expectations in Q1, with earnings growth surpassing 28%, marking the fastest year-over-year growth since the worst of the COVID-19 pandemic in 2021, showcasing robust corporate earnings momentum.
- Tech Stocks Dominate Market: Technology companies like Meta and Alphabet contributed significantly to market improvements, and while energy stocks benefited from soaring oil prices, the strong performance of tech stocks still accounts for about one-third of the S&P 500's total market value, indicating structural imbalances in the market.
- Future Growth Risks: Although analysts expect a 23% earnings growth for the S&P 500 in 2026, the future growth of the tech sector heavily relies on the performance of other tech companies, meaning any failure in one link could impact overall revenue and earnings expectations, necessitating caution from investors regarding potential risks.
See More
SpaceX IPO Could Become Largest in History
- Market Enthusiasm: As AI stocks drive the market higher, investors have shown significant interest in emerging companies like Cerebras Systems, which surged 68% on its first trading day, indicating strong demand for AI investments.
- SpaceX's Vast Potential: In its prospectus, SpaceX claims to have identified the largest actionable total addressable market in history, valued at $28.5 trillion, including $370 billion in space opportunities and over $26 trillion in AI, showcasing its future growth potential.
- Significant Financial Challenges: Despite SpaceX's revenue climbing 79% to $18 billion in 2023, its merger with xAI resulted in an operational loss exceeding $6 billion and capital expenditures over $12 billion, highlighting profitability pressures in its pursuit of AI technology.
- Investor Risk Appetite: While SpaceX and Cerebras differ in profitability, both are in the high-investment, high-potential AI sector, attracting aggressive investors seeking emerging tech opportunities, potentially replicating Cerebras' success during SpaceX's IPO.
See More
Cerebras IPO Sparks Investor Frenzy
- Cerebras First Day Performance: Cerebras saw its stock price surge from $185 to $350 on its IPO debut, marking a 68% increase, indicating strong investor interest in its AI chip technology and suggesting significant future market potential.
- Significant Technological Edge: The chip designed by Cerebras is 58 times larger than Nvidia's, offering exceptional memory bandwidth and speed, with performance surpassing GPU systems in certain scenarios, leading to a $20 billion multi-year contract with OpenAI.
- SpaceX IPO Outlook: SpaceX is set to launch its IPO, potentially valued at nearly $2 trillion, tapping into a $28.5 trillion market opportunity, which excites investors about its prospects in AI and space, likely attracting more risk capital.
- Profitability Challenges and Risks: While both Cerebras and SpaceX show high growth potential in AI, neither has achieved profitability; Cerebras continues to operate at a loss, and SpaceX's AI division reported over $6 billion in operational losses last year, prompting investors to carefully weigh risks against potential returns.
See More
Taiwan Semiconductor: AI-Driven Growth Engine
- Significant Revenue Growth: In Q1 2023, TSMC generated $35.9 billion in revenue with a net profit margin of 50.5%, a substantial increase from $19.6 billion and $0.29 EPS three years ago, highlighting the company's robust performance in the AI market.
- Surge in High-Performance Computing Revenue: Since 2020, the revenue share from high-performance computing chips has skyrocketed from 30% to 43%, with projections of reaching 61% by 2026, indicating TSMC's strong adaptability to technological advancements and market demand.
- Market Dominance: TSMC commands approximately 70% of the global chip manufacturing revenue, with major clients including Nvidia, Intel, and Apple, underscoring its irreplaceable position and competitive edge in the semiconductor industry.
- Rising Stock Price: TSMC's stock has risen 33% year-to-date, and as AI technology continues to evolve, the company is expected to benefit further, driving stock price increases and solidifying its market leadership.
See More
NBIS Stock Surges as Market Cap Nears CoreWeave
- Significant Stock Surge: NBIS shares jumped 11% in overnight trading, bringing its market capitalization closer to that of market leader CoreWeave, indicating strong investor confidence that could drive further price increases in the coming days.
- Institutional Investment Increase: Situational Awareness LP disclosed ownership of 12.41 million Class A shares of Nebius, representing a 5.6% stake worth $2.6 billion, making it one of the largest institutional investors in the company, signaling optimism about its future growth.
- Market Sentiment Shift: On Stocktwits, sentiment for NBIS shifted from neutral to bullish, with message volume surging 212% in the last 24 hours, reflecting a significant increase in investor attention that may attract more capital inflow.
- Surging Demand for AI Infrastructure: As an emerging neocloud company, Nebius has gained traction after securing large cloud contracts with Microsoft and Meta Platforms, positioning itself to benefit from the rapid growth in demand for AI infrastructure, thereby solidifying its market position.
See More
US Stocks Rebound in Q1, Led by Tech Sector Growth
- Q1 Earnings Surge: As of the end of March 2025, the S&P 500 saw earnings growth exceeding 28%, marking the fastest year-over-year growth since Q4 2021, with 84% of its constituents surpassing analyst expectations, indicating strong market recovery potential.
- Tech Sector Dominance: Companies like Meta and Alphabet made the largest contributions to market improvement, with the 'Magnificent Seven' achieving an average Q1 profit growth of 63%, significantly outpacing the 17% growth of the other 493 stocks, underscoring the tech industry's critical role in overall market performance.
- Market Risks and Imbalance: Despite impressive Q2 gains, the 20% year-to-date rise in energy stocks accounts for most of the market's strength, revealing an imbalance that investors should approach with caution due to potential risks.
- Dependency on Future Growth: Analysts project a 23% earnings growth for the S&P 500 in 2026, yet the tech sector's future growth heavily relies on the performance of other tech firms, where any failure could undermine revenue expectations, adding uncertainty to the market outlook.
See More
Risks and Opportunities Behind Market Rally
- Market Rally Analysis: Since late 2025, the S&P 500 has risen over 9%, recovering from a 5% decline at the start of the year due to military conflicts in Iran, indicating a strong market rebound; however, this rebound is uneven, prompting investors to exercise caution.
- Earnings Growth Highlights: According to FactSet, 84% of S&P 500 constituents exceeded analyst expectations in Q1, with earnings growth surpassing 28%, marking the fastest year-over-year growth since the worst of the COVID-19 pandemic in 2021, showcasing robust corporate earnings momentum.
- Tech Stocks Dominate Market: Technology companies like Meta and Alphabet contributed significantly to market improvements, and while energy stocks benefited from soaring oil prices, the strong performance of tech stocks still accounts for about one-third of the S&P 500's total market value, indicating structural imbalances in the market.
- Future Growth Risks: Although analysts expect a 23% earnings growth for the S&P 500 in 2026, the future growth of the tech sector heavily relies on the performance of other tech companies, meaning any failure in one link could impact overall revenue and earnings expectations, necessitating caution from investors regarding potential risks.
See More
SpaceX IPO Could Become Largest in History
- Market Enthusiasm: As AI stocks drive the market higher, investors have shown significant interest in emerging companies like Cerebras Systems, which surged 68% on its first trading day, indicating strong demand for AI investments.
- SpaceX's Vast Potential: In its prospectus, SpaceX claims to have identified the largest actionable total addressable market in history, valued at $28.5 trillion, including $370 billion in space opportunities and over $26 trillion in AI, showcasing its future growth potential.
- Significant Financial Challenges: Despite SpaceX's revenue climbing 79% to $18 billion in 2023, its merger with xAI resulted in an operational loss exceeding $6 billion and capital expenditures over $12 billion, highlighting profitability pressures in its pursuit of AI technology.
- Investor Risk Appetite: While SpaceX and Cerebras differ in profitability, both are in the high-investment, high-potential AI sector, attracting aggressive investors seeking emerging tech opportunities, potentially replicating Cerebras' success during SpaceX's IPO.
See More
Cerebras IPO Sparks Investor Frenzy
- Cerebras First Day Performance: Cerebras saw its stock price surge from $185 to $350 on its IPO debut, marking a 68% increase, indicating strong investor interest in its AI chip technology and suggesting significant future market potential.
- Significant Technological Edge: The chip designed by Cerebras is 58 times larger than Nvidia's, offering exceptional memory bandwidth and speed, with performance surpassing GPU systems in certain scenarios, leading to a $20 billion multi-year contract with OpenAI.
- SpaceX IPO Outlook: SpaceX is set to launch its IPO, potentially valued at nearly $2 trillion, tapping into a $28.5 trillion market opportunity, which excites investors about its prospects in AI and space, likely attracting more risk capital.
- Profitability Challenges and Risks: While both Cerebras and SpaceX show high growth potential in AI, neither has achieved profitability; Cerebras continues to operate at a loss, and SpaceX's AI division reported over $6 billion in operational losses last year, prompting investors to carefully weigh risks against potential returns.
See More
Taiwan Semiconductor: AI-Driven Growth Engine
- Significant Revenue Growth: In Q1 2023, TSMC generated $35.9 billion in revenue with a net profit margin of 50.5%, a substantial increase from $19.6 billion and $0.29 EPS three years ago, highlighting the company's robust performance in the AI market.
- Surge in High-Performance Computing Revenue: Since 2020, the revenue share from high-performance computing chips has skyrocketed from 30% to 43%, with projections of reaching 61% by 2026, indicating TSMC's strong adaptability to technological advancements and market demand.
- Market Dominance: TSMC commands approximately 70% of the global chip manufacturing revenue, with major clients including Nvidia, Intel, and Apple, underscoring its irreplaceable position and competitive edge in the semiconductor industry.
- Rising Stock Price: TSMC's stock has risen 33% year-to-date, and as AI technology continues to evolve, the company is expected to benefit further, driving stock price increases and solidifying its market leadership.
See More
