Nebius CEO Arkady Volozh acknowledged that neocloud companies are finding it harder to raise debt, as some sources such as asset-backed financing and debt markets have temporarily dried up. He said Nebius still has enough funding for its planned capacity expansion, relying on customer advances and other instruments. The company recently secured a $3.5 billion debt facility from Citi and says it has $40 billion in long-term customer contracts that could serve as collateral. Shares slid 4% last week and fell further after Elon Musk said the sector will see 'guppy-level death and consolidation' and that SpaceX has no interest in buying a neocloud company. NBIS has lost about 33% so far this month, though its year-to-date gain is 90%.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
NVDAAI investmentdata centerscloud computing
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/23/2026 | 210.96 |
| Change that session | -0.59% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- The Trillion-Dollar AI Bet: What It Means for Hyperscaler Investors
The five major hyperscalers, Alphabet, Microsoft, Amazon, Meta and Oracle, are expected to spend almost $780 billion on capex in 2026, up 87% year over year, and to exceed $1 trillion annually from 2027 through 2030. Financial risk is rising: Alphabet's long-term debt reached $98.2 billion, up 568% from four years ago, and Meta's was $83.7 billion; Alphabet posted negative free cash flow of $5.9 billion in Q2, Meta's free cash flow fell 91% year over year, and both have paused share buybacks. The article stresses that no one knows what returns will follow, and past spending booms such as railroads and telecom led to overbuilt capacity even though the infrastructure later enabled new businesses. Bain & Company estimates AI infrastructure spending could reach $1.5 trillion annually by 2031, and that the AI economy would need $6 trillion in yearly revenue to justify these outlays, with about two-thirds expected to come from innovation that does not yet exist.
- CRWV, NBIS, IREN, APLD Stocks Drop After Microsoft Capex Falls Short On Delayed Third-Party Capacity
Neocloud stocks fell overnight after Microsoft reported fiscal Q1 CapEx of $45.2 billion, up about 30% year on year but below the $50.7 billion StreetAccount estimate and its own target of around $50 billion. Microsoft blamed delays in some third-party cloud capacity under contract, and CFO Amy Hood said CapEx would exceed $50 billion in Q2 and about $170 billion for the calendar year. Alphabet's Q3 CapEx of $51.36 billion also came in below the $55.09 billion expected, which investors read as a sign that capacity ramp-up at neocloud firms could slow. CoreWeave fell 5.8%, Nebius 6.3%, Iren 5.3% and Applied Digital 4.3%, while Iren had raised $363 million by refinancing recently purchased AI computing equipment through a six-lender syndicate. Bank of America also disclosed a 4.1% stake in Iren.
- CoreWeave Expands AI Cloud Footprint With Denmark Data Center — Plans Global Network Expansion Across 4 Continents
CoreWeave has brought most of the planned 22.5 megawatts of IT capacity online at its DEN01 data center in Copenhagen, its first deployment in Denmark, which uses Nvidia Blackwell systems and lifts its European footprint to nine data centers across five geographies. It is also building what it calls the first global AI backbone network at petabit scale, with connection points in the UAE, India, Indonesia, Singapore, Australia, Korea and Japan, targeted for a complete loop by mid-2027. As of June 30, CoreWeave operated 51 data centers with over 1.5 gigawatts of active power, and contracted power reached about 4.2 gigawatts as of August 11. The stock, nearly 70% below its June 2025 all-time high, fell 37% in October, which UBS attributed to weaker investor confidence in AI infrastructure providers; UBS cut its target to $105 from $120 while keeping a 'Buy' rating, and Morgan Stanley lowered its target to $70 from $99 with an 'Equal Weight' rating.
- Musk Calls Neoclouds Guppies. He Swears He Isn't Fishing.
According to Musk, neocloud providers face “guppy-level death and consolidation.” The article consists of this single remark, with no further details.
- Big Tech's AI spending has Wall Street worried
Dan Flax, Senior Research Analyst at Neuberger, discusses investor concerns over massive AI infrastructure spending by hyperscalers. He notes that cloud businesses are accelerating on AI workloads, but capital needs are rising, prompting debt issuance and an equity raise by Google earlier this year. On Meta, the company raised the low end of its total spending forecast to $135–145 billion this year and has about $825 billion in future spending commitments, which weighed on the stock. Flax argues the core digital advertising business still generates robust operating cash flow, and customers want to rent Meta's compute and use its models, so he expects more visible growth over the coming months that could ease market concerns.
- 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.
Related markets
Latest news
- Binance Hack: Everything You Need to Know About the Biggest Crypto Heist in History
Attackers drained about $6.4 billion from Binance on Thursday, according to Chainalysis and TRM Labs, more than four times the previous record, the $1.5 billion Bybit heist in February 2025. Funds were pulled from Binance hot wallets across roughly 10 blockchains, mostly within about 20 minutes; Binance says the attack targeted its own infrastructure rather than the blockchains, and it has found no evidence that private keys were leaked. TRM Labs and Chainalysis both attribute the attack to TraderTraitor, a North Korean state-linked group. Binance says it will cover all losses with company funds and its Secure Asset Fund for Users, having set aside more than $6.34 billion, and has paused withdrawals to rebuild and retest its systems, aiming to restore them by Sunday. Tether and Circle have frozen roughly $3 billion in related assets, while Elliptic estimates the attacker still controls around $3.3 billion.
- Proposal to raise maximum fine to 1.5 billion VND to ensure deterrence
The government has submitted to the National Assembly a draft amendment to the Law on Handling of Administrative Violations, proposing to extend the statute of limitations to 2 or 3 years in some fields and raise maximum fines to 1.5 billion dong for individuals and 3 billion dong for organizations. Deputy Vu Van Tien says higher fines are needed to punish deliberate, illegally profitable or high-impact violations, but must be proportionate, especially for household businesses and small enterprises. Lawyer Pham Ngoc Thanh supports stronger enforcement but argues increases should not be applied across the board, since deterrence also depends on detection, timely handling and enforceability. He says the legal maximum should be distinguished from the fine applied to each specific violation, and that actual financial capacity must be considered, as a fine that is minor for a large company may exceed what a small operator can pay. In areas such as food safety, environmental protection and counterfeit goods, fines must be high enough that violators do not treat them as a business cost when the gains from violations are larger.
- The Nasdaq 100 Briefly Fell Into a Correction as the AI Trade Cracks
The Nasdaq-100 briefly fell below the correction line (10% below its October 6 record close of 31,224.47) during the October 30, 2026 session as chip stocks slumped, but climbed back above it before the close and finished down 3.46% at 28,384.85. Intel fell 28.6% after guiding fourth-quarter revenue to $15–16 billion, below the $16.5 billion just reported, and the Philadelphia Semiconductor Index dropped 7.2%. NVIDIA fell 4.2% to $204.64 and Invesco QQQ lost 3.47%, while the VIX closed at 19.41 after touching 23.93, suggesting selling eased by the close. Investors are questioning whether hundreds of billions of dollars in AI data center spending will pay off, though Amazon still expects roughly $220 billion in 2026 capex. It is the third time in 2026 the index has fallen more than 10% below a record; the two earlier breaks reversed into new records, and the key level to watch is a close below 28,093.24.
- Oklo Is 86% Below Its All-Time High. Should You Buy at $27 or Wait?
Oklo shares trade at $27, down 86% from an all-time high of roughly $194, after surging in 2025 on enthusiasm for nuclear power to meet AI demand. The company is developing the small modular Aurora reactor but is still awaiting regulatory approval, a process that has been ongoing since 2016, and it has generated little revenue. The author argues that at $27 the company is in much the same position it was at $194, with no approval and no operating plant, though the price is lower. With a market valuation of roughly $5 billion, the author does not consider it a bargain and suggests investors may prefer to wait for the story to play out, since meaningful revenue is probably years away.
- Is AbbVie a Buy After Its Latest Earnings Report?
AbbVie reported third-quarter revenue of $17.4 billion, up 10.3% year over year, and adjusted EPS of $3.82, beating the midpoint of its guidance by about $0.07. Excluding costs tied to acquiring experimental drugs, adjusted EPS rose about 17%, from $3.36 to $3.93. Skyrizi and Rinvoq grew 22.7% and 23.9% and together made up 48.7% of revenue, while Humira sales fell to $683 million from $993 million. The company modestly raised full-year adjusted EPS guidance to $13.95 to $13.99 and increased its quarterly dividend 5.2% to $1.82, starting in February. The author remains bullish on AbbVie's long-term prospects but says its current valuation makes the 2027 guidance, due with fourth-quarter results, especially important.
- If a Bear Market Is Coming, History Says These Stocks Could Be the Smartest to Own
The article argues that bear markets are a normal part of investing and that preparing before a downturn is key. It highlights Johnson & Johnson, Medtronic, Coca-Cola and Procter & Gamble as stocks to consider because they operate in economically resilient industries and have long dividend records. Yields cited are about 2% for J&J, 3% for Medtronic, 2.2% for Coca-Cola and 2.7% for P&G, with Coca-Cola's organic sales up 6% in Q2 2026 and P&G's up 4% in fiscal Q1 2027. A chart in the article shows that during the Great Recession, consumer staples and healthcare fell less than the broader market and recovered more strongly afterward. The article notes that past performance does not guarantee future results.
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.