Susana SchwartzNeoclouds take a hit after midterms
While broader markets and mega-cap hyperscalers rallied as the midterm election results came in, neoclouds and specialized AI infrastructure providers faced sharp sell-offs yesterday – a trend that thus far continued today, with double-digit drops. As of publishing, IREN was down about 15%, Nebius about 14%, and Coreweave about 12%.
Stock prices are dropping as anxiety grows around heavy debt loads, interest expenses, and front-loaded capex – challenges that have now combined with uncertainty about what Democrat-led regulations in the industry will mean.
For example, CoreWeave partner Core Scientific formally added data center construction moratoriums in its Q3 SEC 10-Q filing today, which made investors consider what other HPC landlords, colocation partners, and digital infrastructure developers may do as they reassess risk factors across state, local, and municipal jurisdictions.
IREN is scheduled to report its Q1 FY27 results after the market close today, with a conference call set for 5:00 PM ET. Nebius and CoreWeave earnings calls will take place next week.
Susana Schwartz
Technology Editor
RCRTech
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