AI Infrastructure Stocks Fall on Rate Worries

3-line summary

• Debt-heavy AI infrastructure stocks fell Wednesday on rising-rate concerns and worries over the cost of financing AI buildouts, per Investing.com: so-called 'neocloud' names Nebius dropped 15.1% (on pace for a ~20% monthly loss) and CoreWeave fell 9.5% (~25% monthly loss), while IREN fell 9.9% and data-center operator Applied Digital fell 8.8%.
• Oracle shares fell 7.2%, with most of its dollar-denominated corporate bonds also declining. Dell dropped 10.3% and HPE fell 6.4% after Barclays downgraded both to 'equal-weight.' These stocks had rallied earlier this year on AI optimism.

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