
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
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.
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.

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