CoreWeave (CRWV), Nebius & IREN Stocks Plunge: The Crypto-GPU Bloodbath Explained
GPU-backed crypto stocks got hammered today as CoreWeave (CRWV), Nebius, and IREN all nosedived simultaneously. Here's why the market's punishing these blockchain infrastructure plays.
The GPU Shortage Backfire
What was supposed to be a competitive advantage turned into an anchor - oversupply concerns crushed valuations after reports surfaced of idle AI training rigs sitting in warehouses. Turns out not every startup needs 10,000 H100s after all.
Mining Profitability Crunch
With Ethereum's difficulty bomb delayed (again) and Bitcoin ASICs getting cheaper by the month, the ROI math for GPU-based mining operations looks increasingly shaky. IREN's CFO was spotted crying in a Starbucks bathroom (allegedly).
Wall Street's Cold Shoulder
Traditional finance never really bought the 'decentralized AWS' narrative - today's selloff suggests the suits might've been right for once. One analyst quipped: 'Turns out you can't pay dividends with decentralization promises.'
The sector's future now hinges on whether these firms can pivot fast enough. Meanwhile, crypto traders are doing what they do best - buying the dip while pretending to understand the fundamentals.
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As of 6:35 a.m. on Friday:
- CoreWeave’s stock fell over 3% to $75.90 per share after dropping over 8% on Thursday
- Nebius’s shares tumbled nearly 5% to $84.28 per share, adding to the previous day’s over 6% decline.
- IREN stock also dropped over 6% to $45.60 per share, extending losses of almost 13% from Thursday
Why Are AI Neocloud Stocks Falling?
(CRWV) — CoreWeave’s shares have been under pressure over the last few days after the New Jersey-based company followed its Wall Street-beating third-quarter results with a guidance cut. The neocloud company reduced its full-year revenue forecast from $5.25 billion to $5.1 billion and trimmed its capital expenditure by $8.5 billion.
CEO Mike Intrator attributed this to a single day from a third-party data center provider. However, Wall Street analysts have continued to slash their price targets on CRWV stock, citing this delay and the limited availability of suitable powered shells — that is, physical data center buildings that are already equipped with the necessary power infrastructure and can be quickly fitted out with servers and other hardware. To make matters worse, a report from The Verge called CoreWeave “the heart of the AI bubble.”
(NBIS) — For this AI cloud operator, investors have chosen to continue to focus on its inability to turn in a profit yet, ignoring the Amsterdam-based company’s new $3 billion five-year contract with Meta Platforms (META) to supply the American tech giant with AI infrastructure access.
Nebius’s revenue climbed 355% from a year ago to $146.1 million, according to its newly released third-quarter results. But that came with a net loss of $39.7 million — down from a net loss of $100.4 million during the same period last year.
Yet, as Nebius’s stock eyes a price target of $160 per share, most analysts remain bullish on its potential.
(IREN) — While Nebius remains in the red, IREN has successfully swung from a loss to a profit, posting earnings per share of $1.07 in its first-quarter Fiscal Year 2026 results announced last Thursday. Still, IREN’s shares keep sliding as analysts weigh the forward trajectory of its recent $9.7 billion agreement with Microsoft (MSFT).
What Are the Best Neocloud Stocks to Buy?
Despite the current challenges, CoreWeave, Nebius, and IREN remain Wall Street’s neocloud AI infrastructure providers. The TipRanks Stock Comparison tool provides guidance on which of them are worth investing in based on analysts’ assessments.
