Neocloud Stock Collapse: Buying Opportunity or Run for the Hills?
Neocloud stocks, including CoreWeave (NASDAQ: CRWV), Nebius Group (NASDAQ: NBIS), IREN (NASDAQ: IREN), and Hut 8 (NASDAQ: HUT), took a major hit after technology research outfit Gartner predicted that 80% of companies in the space would cease to exist by 2030. Data center real estate operators, like Applied Digital (NASDAQ: APLD), also took a hit on the report.
Neocloud operators are next-generation cloud computing companies whose infrastructure is designed specifically to run artificial intelligence (AI) workloads, like large language model (LLM) training and inference. They primarily lease computing capacity powered by Nvidia graphics processing units (GPUs), while typically pairing it with high-speed networking and storage.
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