CRWV, NBIS, IREN Stocks Extend Slide Overnight: Retail Eyes The Dip As CoreWeave CEO Says Market Acting ‘Irrationally’

• ARK bought CoreWeave shares worth $14.7 million amid the selloff.
• Dan Ives called fears surrounding CoreWeave “way overdone,” and said hyperscaler earnings would reinforce AI infrastructure spending trends.
• A Stocktwits poll showed 57% of retail traders plan to buy neocloud stocks on the dip, while 22% are waiting for further declines.

Shares of top neocloud operators CoreWeave (CRWV), Nebius (NBIS) and IREN (IREN) dropped further in overnight trading after a sharp fall on Wednesday after  Gartner predicted 80% of neoclouds will cease independent operations by 2030 if AI infrastructure spending continues at its breakneck speed.

Still, several signals — including Cathie Wood-led ARK Investment Management’s purchase of a sizable block of CoreWeave shares and the results of a Stocktwits poll — suggest that some market participants view the selloff as temporary and remain bullish on the sector’s long-term growth prospects.

CRWV slid 4% overnight after tumbling 15.5% in Wednesday’s regular session. NBIS fell 2.5%, while IREN shed 1.5%. Hotter-than-expected inflation data also weighed on tech stocks broadly, adding to Wednesday’s selloff.

CoreWeave CEO Defends Company’s Position

CoreWeave CEO Mike Intrator said the market is acting “irrationally” and that he remains confident in the AI cloud company’s business model, according to an internal memo reviewed by Bloomberg.

“When you are building a new type of technology company, there will be periods of time when the market misunderstands and acts irrationally,” Intrator wrote to staff. “We are confident in our business model, our customers, the extraordinary quality of our execution, and the relentless discipline around the financial engine we have built.”

CoreWeave’s bond prices fell sharply, raising concerns on Wednesday. The company’s unsecured debt due in 2032 traded below 80 cents on the dollar on Wednesday, Bloomberg reported, citing Trace pricing data, a level widely considered the threshold for when a borrower is financially strained.

At that price, the bonds yield more than 15% — a figure noted by venture capitalist Chamath Palihapitiya that led SpaceX CEO Musk to respond “yikes” on his X account.

Amid the slide, Cathie Wood’s ARK Investment Management bought 188,665 shares of CoreWeave, valued at $14.7 million. Over the past year, ARK has largely accumulated CoreWeave shares, while making occasional sales.

Noted tech analyst Dan Ives said in an X post that upcoming hyperscaler earnings should offer investors a clearer picture of spending plans, adding that he expects “those numbers to reinforce the upward trajectory rather than challenge it.” 

Ives also argued that fears surrounding CoreWeave are “way overdone,” drawing parallels with the “SaaS apocalypse” concerns that rattled software stocks earlier this year.

Neocloud Stock Slide: How Did Stocktwits Users React?

Retail traders appear to support the bullish view. In an ongoing Stocktwits poll with about 4,000 votes so far, 57% voted saying that they plan to buy NBIS, CRWV, IREN and APLD stocks on the dip.

Twenty-two percent said they are waiting for more downside, while 7% confirmed that they had already acquired shares. 
 

Retail sentiment for CRWV shifted to ‘bullish’ from ‘neutral’ as of late Wednesday, while the sentiment for the other two neoclouds dropped. NBIS’ sentiment reading shifted to ‘bearish’ from ‘neutral,’ while IREN’s sentiment reading shifted to ‘bullish’ from ‘extremely bullish.

“$CRWV so all of a sudden the debt issues are worth -20% in a single trading session? The panic selling is a joke. This is the same company it was 2, 3,4,5,6 months ago when AI was the greatest show on earth. So called experts flip flop so fast. This will bounce back like it always does,” a trader wrote.

Gartner’s Neocloud Warning 

More than $3.5 trillion of AI infrastructure spending could be exposed to impairment by the end of 2030, if AI providers continue their current pace of capital spending, Gartner said in a report on Wednesday.

"In 2026, AI providers are expected to spend nearly $1 trillion on AI infrastructure, and are forecast to invest an additional $6 trillion between 2027 and 2030," said Will Sommer, senior director analyst at Gartner on Wednesday. "However, our research indicates that enterprise and consumer AI revenue will be insufficient to support profitable returns on all planned AI capital expenditures during this period."

"Because most AI-native providers operate asset-light business models, we predict that less than half of AI revenue will be earned by providers that own significant AI infrastructure," Sommer added.

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