South Korean cloud company Elice plunged over 30% on debut, stoking fears of overcapacity in AI computing and dragging down US neocloud stocks.
01Summary
- 01Elice shares dropped more than 30% during their first day of trading in South Korea.
- 02CoreWeave shares fell 4% in premarket trading as of 9:03 a.m. ET.
- 03Nebius and Iren each lost about 4% in premarket trading.
- 04HSBC analyst Abhishek Shukla has a reduce rating on CoreWeave with a $39 price target, implying 36.5% downside.
- 05HSBC cited debt market woes and moderating large language model revenues as concerns for neoclouds.
02Why it matters
This matters because the IPO flop and falling shares signal growing investor doubt about the profitability and demand for AI-dedicated data centers, which could hit the broader tech sector and your portfolio if you hold these stocks.
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