Neocloud stocks and AI infrastructure face market pressure
Shares of neocloud providers CoreWeave, Nebius, and IREN fell over 30% in October. Credit default swaps for CoreWeave have risen past 11%, a level viewed as distress, while yields on its unsecured notes exceeded 15%. Additionally, SK Hynix canceled the initial public offering for its Solidigm unit due to market volatility.
Why it matters The instability in AI infrastructure spending could impact future tech valuations and capital availability for new services.
Sources CNBC