The worst week in CoreWeave's history indicates that AI traders are becoming more picky.

Traders are becoming more selective with artificial intelligence companies, favoring those with strong balance sheets over those with heavy debts. Due to soaring demand for memory chips used in AI computing, stocks of companies like Micron Technology are rising, while companies like CoreWeave Inc. are seeing their stock prices fall. The shift in AI trading is prompting investors to reassess their investments, with some companies like Oracle experiencing a sharp drop in stock price due to concerns about debt and cash flow. "The market is reevaluating everything, and companies that were once soaring but have little cash flow are now being hit hard," said Joe Tigay, portfolio manager of the Rational Equity Armor Fund, which holds stakes in numerous AI stocks.