Nvidia’s AI Cloud Partners CoreWeave, Nebius, and IREN Fail to Sustain Post-Earnings Rally
Nvidia's stellar third-quarter earnings failed to buoy its AI cloud partners CoreWeave, Nebius, and IREN, as all three stocks retreated sharply after an initial post-earnings bounce. The chipmaker's bullish outlook on AI demand wasn't enough to sustain momentum for these GPU infrastructure providers.
CoreWeave led the declines with a 7.6% drop to $69.21, while Amsterdam-based Nebius plummeted nearly 11%. Australian firm IREN rounded out the selloff with a 5% decline. The reversal suggests investors remain cautious about AI infrastructure plays despite Nvidia's blockbuster results.
Market sentiment appears bifurcated - while Nvidia continues to ride the AI wave, its ecosystem partners face tougher scrutiny about execution and valuation. The divergence highlights how capital is becoming more selective within the AI thematic trade.
