Shares of Elice, a South Korean cloud company compared to CoreWeave, fell more than 30% in their market debut as investors grew wary of AI computing providers amid overcapacity concerns. The selloff spread to U.S. tech: CoreWeave fell about 4% in premarket trading, Nebius and Iren each shed about 5%, and Vertiv slipped 2%. HSBC said debt market woes and moderating LLM revenues are worsening structural concerns for neoclouds, and analyst Abhishek Shukla keeps a reduce rating on CoreWeave with a $39 price target, implying 36.5% downside.
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NVDAdata centersIPOSouth Korea
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Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/19/2026 | 217.09 |
| Change that session | +1.38% |
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/19/2026 | 718.36 |
| Change that session | +1.21% |
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Shares of South Korea's Elice Group fell 32% on their debut, the worst first-day performance in South Korea for a company raising over US$100 million in an IPO, according to Dealogic. The stock closed at 60,500 won, below its 90,500-won IPO price, and its slide helped drag the benchmark KOSPI down 3.73% to its lowest close since April 7. Investors are increasingly doubting AI spending, competition and profitability, and several AI infrastructure deals have been delayed, including Firmus's IPO and SB Energy's US share sale. Elice's first-half revenue tripled to 34 billion won, and it swung to a 10 billion won operating profit from a 3.5 billion won loss a year earlier.
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