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Back|Data center stocks slide as Korea IPO plunges 30%, pressuring tech sentiment
Data center stocks slide as Korea IPO plunges 30%, pressuring tech sentiment
Developing
CNBC·1 hour ago·Business·1 min read

Data center stocks slide as Korea IPO plunges 30%, pressuring tech sentiment

Quick Look

Data center and AI computing stocks fell Tuesday after South Korean cloud firm Elice dropped over 30% in its market debut, fueling investor concerns regarding potential overcapacity in the AI-dedicated computing sector.

AI-generated summary

Why It Matters

Elice is a South Korean cloud company often compared to the U.S.-based provider CoreWeave. Investors are currently evaluating the sustainability of AI-dedicated computing power providers.

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Data center stocks struggled Tuesday following a lackluster initial public offering overnight from a South Korean cloud company that has been compared to U.S. neocloud CoreWeave.

Shares of Elice dropped more than 30% during their market debut overnight, as investors grow increasingly wary of artificial intelligence-dedicated computing power providers amid concerns about overcapacity.

The bearish sentiment spilled into U.S. tech equities. CoreWeave shares lost 4% in premarket trading as of 8:08 a.m. ET. Nebius shed about 5% along with Iren. Vertiv pulled back 2%.

HSBC said in a Monday note that the troubles for the heavily levered CoreWeave are not going away.

Open Questions

  • ?Will the decline in AI-related stocks persist beyond the short term?
  • ?How will CoreWeave address the leverage concerns raised by HSBC?

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This article was originally published by CNBC.

Quick Look

Data center and AI computing stocks fell Tuesday after South Korean cloud firm Elice dropped over 30% in its market debut, fueling investor concerns regarding potential overcapacity in the AI-dedicated computing sector.

AI-generated summary

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CNBC
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Published
1 hour ago
elice
coreweave
data centers
elice
Elice
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Nebius
Iren
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artificial intelligence
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