(Reuters) -CoreWeave’s shares plunged nearly 9% in premarket trading on Tuesday after it scaled back its annual revenue forecast due to data center hiccups despite strong demand for its artificial intelligence services.

The Nvidia-backed company’s margins are pressured by soaring infrastructure expenses, rising AI chip prices and intensifying competition for computing power, weighing on profitability.

CoreWeave said it faced delays with a key data center partner, but that the impacted customer had agreed to extend the contract, keeping the deal’s total value intact. It did not name the client.

“The quarter revealed something that investors have feared for a while – operational risk,” analysts at Barclays said.”This is the first time for the young AI infrastructure industry that this has

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