Data center stocks, particularly 'neoclouds' like CoreWeave, are facing renewed pressure after a South Korean AI cloud company's IPO plunged 30% . This event signals growing investor wariness over potential overcapacity and debt market woes in the AI infrastructure sector . HSBC reiterated a 'reduce' rating on CoreWeave, citing structural concerns and moderating LLM revenues . This follows recent disappointments from private AI algorithm companies like Anthropic and OpenAI, which reported decelerating revenues . The broader market saw the AI 100 basket fall 5% last week, with CoreWeave's credit default swaps surging . This trend highlights increasing scrutiny on the profitability and financial health of companies in the AI value chain.
Data center stocks remain under pressure after Korea IPO plunges 30%
CNBC.COMOct 20, 3:45 PM UTC
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