Neoclouds CoreWeave, Nebius and IREN lost over 30% in October, CoreWeave's CDS spread passed 11%, and Solidigm canceled its IPO
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
The market is growing warier of companies that borrow to build SI data centers, but there is no general crash yet.
According to CNBC, it was a rough week for the SI infrastructure market: shares of the neoclouds CoreWeave, Nebius and IREN fell sharply, and each has lost well over 30% in October. CoreWeave's credit default swap spread passed 11% — a level generally seen as a sign of stress — and yields on its 2031 and 2032 unsecured notes topped 15%. SK Hynix's Solidigm unit dropped its IPO. The Nasdaq fell further on Friday and ended the week down 0.7%; Alphabet shares fell 6% ahead of its third-quarter report next week, and Microsoft and Amazon fell less than 1%. One person CNBC spoke to says the market is "throwing the baby out with the bathwater" and punishing everyone classed as a neocloud. There has been no broad sell-off so far, CNBC says, but the SI infrastructure build-out is showing signs of strain.
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