Retail investor enthusiasm for CoreWeave's upcoming public offering may be dampened by concerns surrounding the company's debt burden and other financial difficulties. Analysts believe that the timing of the IPO is not ideal, as the equity markets are currently facing uncertainty due to tariffs and increasing competition from Chinese AI startup DeepSeek.

There is a sense of frustration regarding the returns from Big Tech's AI investments and whether CoreWeave has missed the opportune moment to go public. The company recently had to downsize its IPO due to these challenges, garnering a valuation lower than initially targeted.

Despite experiencing significant revenue growth last year, CoreWeave faces risks in maintaining this momentum and meeting earnings expectations in the long term. The company also carries a substantial debt load, with plans to utilize a portion of the IPO funds to alleviate this financial obligation.

Concerns have been raised about CoreWeave's heavy dependence on Microsoft and the potential impact of the latter's AI data center strategy on the demand for GPUs. However, some experts believe that competition in the AI sector will drive further investments rather than causing setbacks.

The retail investor interest in AI companies has been substantial in recent years, with major players like Nvidia, Microsoft, Amazon, Apple, and Alphabet attracting significant attention. Despite challenges, some experts remain optimistic about the growth prospects of companies in the AI sector.