AI boom stumbles over white swan events
SMH•Nvidia and TSMC shares fell, while CoreWeave dropped more sharply as investors weighed high neocloud leverage, potential rate hikes and concerns about AI funding and demand. CoreWeave fell more than 6% in premarket trading after a 15% drop the previous day, while South Korea’s KOSPI sank almost 8%.
1. AI shares fall
Shares in Nvidia and TSMC were falling, while GPU landlords such as CoreWeave were down far more. The declines largely reflected known concerns including high neocloud leverage and potential rate hikes, but deeper worries about AI’s funding model and demand durability may follow.
2. Global selloff
CoreWeave fell more than 6% in premarket trading on October 15 after dropping 15% the previous day. Oracle shares were down 2% after falling nearly 9% the prior day, while South Korea’s KOSPI index plunged almost 8% during trading.
