Shares of NextDC, one of Australia's largest data centre builders, fell 40% after the company said delays at its flagship Melbourne site would leave revenue forecasts short. The delays followed community concerns over its M3 expansion, which led Jemena to pause construction of 22-metre power poles in Footscray. The article points to wider strain in the sector: Firmus cancelled its Australian listing for lack of demand, Nscale is struggling to attract buyers for a Wall Street listing, and CoreWeave dropped 15% in a day. It also notes that investment could reach US$10 trillion (A$14.25 trillion) by 2032, while higher borrowing and construction costs and the need for AI firms to lift revenue 80% a year for six years add pressure.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on miragenews.com ↗
Keywords
data centersartificial intelligenceCoreWeaveAI investment
Open a keyword to see other news on the same topic.
Related tickers and likely impact
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/21/2026 | 725.21 |
| Change that session | +1.06% |
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/21/2026 | 221.87 |
| Change that session | +2.49% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Shares in this data centre company are down 40 % as investors lose faith in the AI story
NextDC shares collapsed 40% after the Australian data centre builder said delays at its Melbourne M3 site, driven by local community concerns and Jemena's pause on 22-metre power poles in Footscray, would leave revenue short of forecasts. The article says investors are now questioning the long-term viability of data centres, pointing to Firmus cancelling its listing on the Australian stock exchange, Nscale struggling to attract buyers for a Wall Street listing, and CoreWeave shares falling 15% in one day. Investment in AI infrastructure is expected to reach US$10 trillion (A$14.25 trillion) by 2032, while higher borrowing and construction costs and short-lived AI chips add pressure. Community opposition over noise, visual impact and potential rises in electricity and water prices is also eroding social licence, with New South Wales data centres potentially consuming up to 25% of Sydney's daily water demand within a decade.
- Did SpaceX Just Save CoreWeave, Nebius, and the Neocloud Sector?
Ahead of SpaceX's third-quarter report, confidence in AI infrastructure stocks had collapsed, with CoreWeave at the center of concerns over its debt after some of its bond yields reached 15%. SpaceX's superintelligence (SI) segment made up more than half of its third-quarter revenue and over 80% of capital expenditures, with SI revenue nearly tripling from the prior quarter to $7.56 billion. Musk said current AI compute pricing gives a payback period of under a year on new deployments and maintained his forecast of 10 gigawatts of additional compute in 2027. CoreWeave and Nebius shares turned red at the regular open after rising after hours, and were up less than 1% by afternoon. The article notes that Musk's comments are promising for the neoclouds, but CoreWeave's interest expense, at roughly a quarter of its revenue, remains a key hurdle.
- Expanding AI trade is turning safety stocks into a 'Texas hedge'
A CNBC Pro contributor argues that investors are rotating into defensive sectors like utilities and consumer staples, but utilities have become tied to AI-driven power demand and may not be as safe as they appear. The author says heavily indebted AI infrastructure providers such as CoreWeave (CRWV) and Iren (IREN) carry greater risk, while consumer staples, tracked by XLP and led by Walmart (WMT), Costco (COST) and Procter & Gamble (PG), generate steady cash flow and offer a dividend yield of about 2.6%. The piece outlines a bullish call diagonal spread on XLP, buying in-the-money January 2027 $85 calls and selling November $92 calls, with maximum risk capped at the net debit paid and a 92–95 target. The content is presented for informational purposes only and is not investment advice.
- Down Almost 25% in a Week, Is CoreWeave Stock a Buy Now?
CoreWeave (CRWV) shares plunged nearly 25% in a week as investors grew concerned about the financial risks behind the AI infrastructure boom. The article highlights strong growth, with second-quarter 2026 revenue reaching $2.6 billion, up 112% year over year, and a revenue backlog of roughly $104 billion. However, it points to debt of about $50 billion, bond yields on some notes surging to around 15%-16%, and competition from Amazon, Microsoft, Alphabet and Nebius as key risks. The author says valuation and the company's ability to deliver infrastructure on schedule are the main things to watch, and would keep the stock on a watch list rather than buy the dip now.
- Michael Burry Is Shorting Nebius. SpaceX Just Said Its AI Chips Pay for Themselves in Under a Year.
SpaceX CFO Bret Johnson said on the third-quarter call that new AI compute deployments currently pay back in less than a year, with pricing slightly above the high end of the $30 to $50 per watt range. Elon Musk said a six-month payback next year is not impossible, but he was not saying it will happen, and because SpaceX leases at effectively the spot market rate, the payback depends on spot prices holding. Michael Burry is shorting Nebius, which fell 14.53% over the past week and 20.9% over the past month, while CoreWeave fell 17.83% and 21.41%. The article argues that both neoclouds carry heavy debt before revenue arrives, making them vulnerable if AI cloud prices slip, and both report third-quarter results in the coming weeks. SpaceX's figures are management statements without formal backing, and the company did not disclose its cost per watt, utilization or depreciation assumptions.
- CoreWeave Stock Is Getting Crushed. Here's What Investors Should Watch.
CoreWeave (NASDAQ: CRWV) shares fell nearly 25% in the week to Oct. 16, and bond yields on some of its debt rose to roughly 15%-16%, signaling investor doubt about financing its AI infrastructure expansion. The company has about $50 billion in debt, and its capital-intensive model means higher borrowing costs could raise its cost of capital just as it needs more funding. Operations are still growing: second-quarter revenue rose 112% to $2.6 billion, and backlog reached about $104 billion, excluding more than $25 billion in new commitments added early in the third quarter. Still, it reported a $626 million net loss and $640 million in net interest expense in the quarter, and a backlog is not the same as cash collected. The article recommends watching financing costs, cash generation relative to debt, and returns on new infrastructure rather than predicting the share price.
Related markets
Latest news
- 3 reasons SpaceX could fall short of $1 trillion revenue goal
Host Ejaaz Ahamadeen outlines three obstacles that could keep Elon Musk's SpaceX (SPCX) from reaching a $1 trillion revenue goal. First, capex of $35 billion to $40 billion raises funding questions, with Tesla's balance sheet cited at about $43 billion and rumors that Musk is seeking $30 billion to $50 billion before the Anthropic IPO. Second, moving from GB300 to Vera Rubin GPUs may prove technically harder, as the host doubts Jensen Huang's claim that the new chips take about 5 minutes to bring online and notes that next-gen GPUs have historically taken time to deploy. Third, revenue forecasts diverge sharply: JP Morgan projects $254 billion next year, while Musk's estimate is $500 billion to $1 trillion.
- SpaceX Just Crushed Wall Street's Q3 Targets -- but a Potential Tesla Merger Is Even Bigger News
SpaceX reported third-quarter adjusted EPS of $0.45 on sales of $14.58 billion, far above analyst averages of $0.13 and $12.72 billion. Revenue rose 161% year over year and net income swung to $4.4 billion from a $1.1 billion loss a year earlier; Starlink sales grew 69% to $5.25 billion, while the superintelligence segment rose about 830% to $7.56 billion. The company guided first-quarter 2027 sales to $33–37 billion, and Musk said he expects annual recurring revenue of $500 billion–$1 trillion by the end of next year. On the call, Musk said special committees had been formed to explore a merger with Tesla, that he could not take part due to conflicts, and that merging was a good idea, though shareholder approval equal to 50% of total shares would be a significant hurdle.
- Blackstone's Jon Gray says CoreWeave can 'find a way through' financing pressure
Blackstone COO Jon Gray told CNBC that CoreWeave, despite concerns about its massive debt, will “find a way through” its financing challenges and that its underlying business is strong. CoreWeave has about $51.6 billion in total debt, including roughly $35 billion in notes, bonds and loans, and its shares fell 3.55% Thursday and 14% over the past week as investors questioned how it will fund its data centers. Gray said demand for computing power is strong while supply is constrained, and that if neoclouds get through this phase, compute pricing is up 50%. Blackstone's third-quarter revenue of $3.22 billion missed the $3.28 billion expected, while adjusted EPS of $1.32 beat the $1.26 consensus; Gray called it a challenging quarter due to high energy prices and rising Treasury yields. He expects a strong fourth quarter and 2027, and IPOs to resume once markets calm.
- Chip stocks break a bear trap after a $2.6 trillion rout — here are the levels bulls need to hold
The PHLX Semiconductor Index (^SOX) is down about 3% after dipping to 11,000, a support level that has rescued chip stocks twice since September, so the bear-trap rebound only holds if that floor does. Since Oct. 6, all 60 stocks in Yahoo Finance's chip basket have fallen, erasing about $2.7 trillion in market value; Lam Research and Applied Materials are each down nearly 30%, AMD nearly 20%, and Nvidia 9%. Lam fell despite record revenue because it said supply limits would cap its outlook and China sales would be “meaningfully down” in December. The Nasdaq 100 is down about 6% over the same period. The article flags 10,450–10,550 as the zone to watch if 11,000 breaks, and 12,600–12,700 as the level bulls must reclaim, while semiconductor ETFs saw record flows over the past week.
- A New Mexico Judge Just Hit Meta With a $25 Billion Penalty
On October 21, 2026, a New Mexico judge ordered Meta to pay the state $25 billion over misleading Facebook users about privacy in the Cambridge Analytica case, far above the FTC's $5 billion fine in 2019. Jurors found 26 of 29 statements misleading, and counting each statement per user or resident who saw it produced more than 43 million violations, with state law allowing up to $5,000 each; all the money goes to New Mexico schools. The judge said the conduct went to the heart of Facebook's core business and found that senior leaders, including Zuckerberg and Sandberg, misrepresented its privacy practices. Meta is appealing, has paid nothing, and interest keeps accruing, while the penalty equals about 2.5 times its $9.86 billion third-quarter net income.
- Meta is leading the way for hyperscalers, and don't sleep on the Tesla Cybercab
In this Yahoo Finance segment, Brian Sozzi highlights Meta (META) unveiling a new class of stock that could serve as a blueprint for other hyperscalers, the view that investors are overlooking Tesla's (TSLA) vehicle, and bearish sentiment around CoreWeave (CRWV). He then interviews P&G CFO Andre Schulten about encouraging growth and whether everyday product use has hurt the company with consumers.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.