CoreWeave (NASDAQ:CRWV) investors have had little to cheer about lately, with the AI infrastructure stock tumbling 30% in October and losing 52% of its value over the past 12 months. Monday initially offered some hope, as shares climbed during premarket trading, but that optimism disappeared shortly after the opening bell. By the end of the session, CRWV had slipped another 0.5%, extending a miserable period.

Behind the selling are mounting concerns about the billions of dollars being poured into AI infrastructure, particularly whether future revenue can justify such massive spending. CoreWeave faces additional scrutiny over its heavy debt burden, expensive financing arrangements, and continued losses.

Recent developments involving OpenAI and Anthropic have added another source of anxiety, with concerns about slowing revenue growth and mounting competition threatening the industry's expectations for computing demand. If these leading developers fail to deliver the revenue expansion anticipated by Wall Street, cloud providers could eventually reconsider their investment plans, potentially leaving companies like CoreWeave facing a far less favorable environment.

For investors tempted to view the selloff as a buying opportunity, one investor, known by the pseudonym Rational Techne (RT), warns against fooling themselves into thinking the worst is over.

RT, who assigns CRWV a Strong Sell rating, believes the stock's recent collapse has done little to improve its appeal as a long-term investment.

"The losses over the next couple of years could be truly harrowing, in my view," the investor warned.

RT's pessimism stems partly from what he sees as a fragile foundation supporting the AI industry. The investor argues that OpenAI and Anthropic are essential to sustaining the massive capital expenditures undertaken by leading tech companies, making any deterioration in their prospects potentially damaging for infrastructure providers.

The investor points specifically to Anthropic's slowing quarterly revenue growth, which fell from 147% to 45%, alongside reports that OpenAI has struggled to meet internal financial targets. Although such expansion would ordinarily be considered excellent, the investor believes current valuations require far greater performance to remain justified.

CoreWeave's financial position makes these concerns especially serious in his assessment, given its debt-to-equity ratio of around seven times. The investor fears that weaker customer demand could leave the company struggling to meet its obligations while continuing to spend heavily on new computing facilities.

RT also argues that buying CRWV today requires confidence in several favorable outcomes occurring simultaneously, including sustained industry expansion, continued spending by hyperscalers, successful execution, and eventual profitability.

For those willing to make that wager, the investor offers a particularly pointed warning: "I have no problem with anyone believing in fantasy lands; I just think it's a bad idea to bet that they'll turn into reality."

Wall Street, however, is far less pessimistic about CoreWeave's future, with 21 analysts recommending Buy, 6 staying on the sidelines, and just 2 advising Sell. That leaves CRWV with a Moderate Buy consensus rating, while the average 12-month price target of $140.21 points to a potential gain of 129% from current levels. (See CRWV stock forecast)