Why CoreWeave, Nebius and IREN stocks have fallen

Shares of CoreWeave, Nebius and IREN have fallen this year. CoreWeave slid from $186 to $87, Nebius from $300 to $224, and IREN from $77 to $43. The declines followed announcements of larger capital spending plans, higher hardware costs and increased borrowing.

All three companies reported rapid revenue growth and rising demand for GPU capacity. CoreWeave’s backlog exceeded $104 billion. The company’s revenue rose 112% to $2.6 billion and adjusted EBITDA reached $1.5 billion. Analysts project CoreWeave revenue of about $12.9 billion this year and $26.4 billion next year. Nebius reported quarterly revenue growth above 400%, driven by large contracts, and analysts forecast roughly $3.34 billion this year and $12 billion next year. IREN, which shifted from Bitcoin mining to AI data-center operations, is expected to generate about $2.8 billion this year and $7.2 billion next year.

Hardware and infrastructure costs have risen for GPUs, memory, servers and optical systems, increasing build expenses. CoreWeave raised its capex outlook to $35 billion–$39 billion for the year, up from an earlier $30 billion–$35 billion range. The company has taken on more than $27 billion in debt in recent months. Nebius sold more than $2 billion of stock in the second quarter and retains about 12 million shares it could issue to fund expansion. IREN has increased leverage while scaling GPU capacity.

Short interest is elevated across the three names: about 23% for Nebius, 12.8% for CoreWeave and 24% for IREN. Market participants point to heavy capital needs and the potential for oversupply as factors keeping pressure on the shares.

Competitive dynamics and large corporate agreements have affected the market. A large order tied to SpaceX will pay roughly $1.1 billion per month starting in December. Major cloud operators have begun leasing spare capacity. Each of the three firms has received substantial investment from Nvidia.

Concerns about an AI market correction and renewed calls to slow deployment of advanced models have weighed on sentiment. Executives and analysts report ongoing demand for GPUs, while higher component prices and active buildouts have pressured margins until capital spending eases.

Analysts expect revenue growth to remain strong and predict that once major buildouts taper, the companies could generate significant free cash flow. For now, aggressive capex plans, elevated borrowing and additional share issuance to fund growth have been key factors linked to the share-price declines despite strong top-line momentum.

Neocloud operators build and lease GPU-focused data-center capacity for AI workloads. How quickly firms reduce spending, absorb hardware price inflation and convert backlog into cash-generating operations will affect investor confidence going forward.