AI Infrastructure Stocks Crash as Fed Rate-Hike Bets Rattle Wall Street
Wednesday was a bruising day for AI infrastructure stocks — the companies building the physical backbone of the AI era. Reuters reports that shares of neocloud firms Nebius and CoreWeave fell 15.1% and 9.5%, respectively, on October 14, as investors priced in a growing chance that interest rates climb higher and make the industry’s debt-fueled expansion far more expensive. The damage spread fast. Data center operators Applied Digital and IREN dropped 8.8% and 9.9%. Oracle, the debt-heavy hyperscaler betting big on AI, slid 7.2%, with most of its dollar bonds declining too. Server makers Dell and HPE fell 10.3% and 6.4% after Barclays downgraded both to “equal-weight” from “overweight.” ...