CRWV: OpenAI News Shakes AI Stocks. Is the Sell-Off Over?CoreWeave, Inc. Class ABATS:CRWVDr_Rabbit_CoreWeave CRWV has dropped sharply, falling from around $92 to $82. Price is now sitting near a support zone that has held several times before. The sell-off comes as investors question whether AI companies can justify the huge amounts of money they’re spending. OpenAI’s reported annualized revenue of around $50B has added to those concerns. The recent AI sell-off has given traders a reason to be cautious. But I don’t think the whole AI story is broken. The bigger question is whether companies like CoreWeave can turn strong demand for AI computing into enough revenue to justify their huge spending. Here is how I’m trading it. • My Trade Setup 📊 LONG ENTRY: $80–81 TP1: $84 TP2: $88 SL: $78 I want to enter around $80–82 if buyers defend support. My first target is $84. If CRWV gets back above that level, I’ll look for $88, which is also close to the falling trendline on my chart. A clean break above the trendline would be a stronger sign that buyers are taking control again. If price breaks below $78, I’m out. I don’t want to hold a long while support is failing. • Why AI Stocks Are Under Pressure? The latest sell-off came after reports that OpenAI's annualized revenue was close to $50 billion at the end of September, below the nearly $70 billion figure previously reported. That headline put pressure on several AI-linked stocks. On October 8, CoreWeave fell 7.77%, while Nvidia and Oracle also dropped. But there is an important detail here: **the difference in OpenAI's reported figures is largely related to how revenue is counted. It does not mean $20 billion in actual sales suddenly disappeared.** OpenAI's figure excludes some sales made through cloud partners, while other companies use a different method. Still, investors are questioning how much AI infrastructure spending depends on a small number of large customers. For CoreWeave, that matters because its business depends on building expensive computing infrastructure and securing customers willing to pay for it. > Source: [OpenAI revenue report and the AI stock sell-off — TradingView News • The Other Side of the Story I’m not ignoring the growth opportunity. CoreWeave continues to expand its AI cloud business. On October 7, the company announced its entry into India through a partnership with AdaniConneX, with plans for a 240 MW data-centre campus. It has also been expanding its AI infrastructure and working with Nvidia on newer systems designed for demanding AI workloads. That tells me the demand for computing power is still creating opportunities. The concern is how much capital these projects require and how quickly the spending turns into returns. CoreWeave has also announced new financing plans, including convertible notes and an at-the-market share offering. These can help fund expansion, but they also bring risks around debt and possible shareholder dilution. So I see two things happening at once: the business is expanding, but the market is becoming more careful about the cost of that expansion. > Sources: Latest CRWV market developments — TradingView News • The Levels That Matter CRWV needs to hold the $78–81 support zone and recover above $84. If buyers manage that, I’m targeting $88 near the falling trendline. If the stock breaks below $78, I’m out. I won’t keep buying a falling stock just because the AI story looks good. • Trading CRWV on Bitget I also like being able to trade stock futures outside regular US market hours. AI stocks can react quickly to news after the closing bell, and I don’t want to be limited to watching them only during the normal session. Bitget offers 24/7 Stock Futures, while its Alliance Program has now passed $4 million in rewards, according to the campaign update. Eligible users can earn rewards from qualifying activity, so it’s worth checking the program if you already trade on Bitget. I keep my focus on the trade first. For CRWV, that means respecting the support zone, taking profits at my planned levels and getting out if the setup fails.