Shares of major US neocloud companies fell sharply in early trade on Thursday following Nvidia CEO Jensen Huang's resignation, as turmoil at the world's leading AI chipmaker rippled through the broader artificial intelligence industry.
Nebius Group led the losses, with its shares plunging 16.25% to $129.56 on the Nasdaq. The decline came despite the company reporting third-quarter results that beat analysts' expectations. However, its guidance disappointed investors.
CoreWeave shares fell 7.40% to $56.28, while IREN shed 7.05% to $19.37. Applied Digital declined 4.97% to $17.02, followed by Core Scientific, which slipped 3.91% to $14.
Cipher Digital lost 2.04% to $6.96, while TeraWulf edged down 1.65% to $13.14. The Roundhill Neocloud ETF dropped 8.90% to $14.53.
Neocloud companies, which provide computing capacity for artificial intelligence workloads and rely heavily on Nvidia's graphics processing units (GPUs), are particularly exposed to developments at the chipmaker.