Nvidia (NVDA) Stumbles as CoreWeave, Nebius, and IREN Rally Falters — The Real Reason

Nvidia's AI dominance hits unexpected turbulence as key partners lose momentum.

The Infrastructure Shakeup

CoreWeave's cloud computing surge stalled—Nebius couldn't maintain its infrastructure push—IREN's mining operations plateaued. Three pillars of Nvidia's expansion strategy showing cracks simultaneously.

Market Realities Bite

Supply chain constraints meeting decreased institutional demand—the classic crypto winter recipe. Even AI's golden child can't defy market gravity forever. Wall Street analysts suddenly remembering that 'past performance doesn't guarantee future results'—who knew?

The Silver Lining Play

Smart money's already rotating into decentralized compute alternatives. Because sometimes the real AI revolution happens off-Nvidia's balance sheet.

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Early Thursday, the three neocloud providers, which offer graphics processing unit-centric infrastructure and services for AI workloads, bounced out of the earnings-inspired plunge. This came after Nvidia’s performance wowed Wall Street and Jensen Huang, the chipmaker’s top executive, emphasized that there is no AI bubble.

However, the three companies, scattered across various parts of the world, dropped dramatically by the end of Thursday’s trading.

• New Jersey-based CoreWeave (CRWV) fell by 7.62% to $69.21 per share.
• Amsterdam-headquartered Nebius plunged by 10.97% to $84.64 per share.
• Australia’s IREN (IREN), which is based in Sydney, ended the day over 5% lower, closing at $43.47 per share.

The reasons why these shares continued to fall are detailed in this previous article.

What Is Wall Street Saying?

In the last five days alone, CoreWeave’s shares have plunged over 24%. Yet, Wall Street remains bullish on the company’s stock, with analysts pointing to the neocloud company’s key long-term supply contracts and Nvidia’s guarantee to buy out its unused GPUs through 2032 in a $6.3 billion deal.

Nebius and IREN are also facing a similar fate. Over the past five days, NBIS stock has fallen about 19%, while IREN has dropped even lower by approximately 25%. However, some analysts remain bullish on both upstarts.

Citizens JMP analyst Gregory Miller recently pointed out that Nebius and IREN are two of five companies that started as Bitcoin miners but now provide “critically scarce” power for high-performance cloud computing and AI workloads. Miller also argued that both companies’ GPU clusters offer an avenue to “unlock significant value.”

Furthermore, Bernstein analyst Gautam Chhugani believes that IREN is “guiding for an exponential scale-up” in its AI cloud business to generate $500 million in annual recurring revenue.

Which Is the Best Neocloud Stock to Buy?

The TipRanks Stock Comparison tool shows that Nebius is the only stock of the three that currently boasts a Strong Buy consensus recommendation from analysts. However, CoreWeave offers the biggest upside, as the image below shows.