US neocloud stocks fall after Democratic sweep
QQQ•US neocloud stocks fell premarket after Democrats swept key data center markets Texas and Georgia. CoreWeave dropped 7.5%, IREN fell 6.1% and Nebius declined 5.4%.
1. Shares decline premarket
CoreWeave was among the biggest decliners, falling 7.5%; IREN dropped 6.1% and Nebius fell 5.4%. The Roundhill Neocloud ETF fell 4.8% and has lost more than 33% since its inception in early August.
2. Regulation and targets
Democratic gains fueled concerns about tighter data center regulation and potential curbs on AI infrastructure expansion. Deutsche Bank cut its CoreWeave price target to $125 from $150, while Citi lowered its target to $128 from $159, citing higher financing costs and valuation concerns. As of the last close, Nebius was up more than 81% year to date, while CoreWeave and IREN were down more than 24% and 35%, respectively.
