Neocloud firms extend declines as rate-hike fears hit debt-heavy AI firms

Nebius NV

15/10/2026 09:55

   ** Shares of neocloud firms CoreWeave CRWV.O and Nebius Group NBIS.O drop 6.1% and 4.9% premarket, extending last session's selloff 
** AI infrastructure-related firms slid on Wednesday after a hot consumer prices reading fanned concerns about risks posed by rising borrowing costs in the capital-intensive sector
** CRWV's 2031-maturity bond US21873SAG30=TE drops more than 1.4 cents on the dollar, and its yield surges to an all-time high of more than 15% - Tradeweb data 
** Cost of insuring against CRWV's debt surges past 1,000 bps to record highs - S&P Global Market Intelligence data 
** IT research firm Gartner predicts over 80% of neocloud providers will cease independent operations by 2030, due to cost pressures and a lack of differentiating business model from hyperscalers 
** As of last close, CRWV shares were set to wipe out a quarter of its value this month, NBIS on pace to erase a fifth of its value 

 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com))