Wall Street strategists are warning that declines in shares of AI cloud-computing providers will spill into other corners of the tech trade, potentially dragging the US stock market down to its June lows.
CoreWeave Inc. (CRWV), the company at the center of the tumult after its bonds plunged to distressed levels this month, saw its shares drop 41% since Oct. 6, when major US equity indexes hit a fresh record. Shares of other neoclouds — companies that provide computing power to firms building and running artificial intelligence models — have also posted double-digit declines during that time. Iren Ltd. (IREN) is down 40% while Nebius Group (NBIS) NV has dropped 36%.
Emily Forgash & Geoffrey Morgan | Yahoo Finance