AI infrastructure companies' shares tumble amid fresh Fed rate concerns
Business
AI infrastructure companies saw their stock prices tumble on Wednesday, thanks to fresh worries that the US Federal Reserve might raise interest rates soon.
Higher rates could make it tougher and more expensive for these companies to get funding, which is a big deal for AI development.
Nebius and CoreWeave were among the hardest hit, dropping 15.1% and 9.5%.
Broader tech stocks fall sharply
The sell-off did not stop with AI firms: related tech stocks like Applied Digital, IREN, Oracle, Dell, and HPE also fell sharply.
Even big names have been sliding lately as investors get more cautious.
As Kim Forrest, chief investment officer at Bokeh Capital Partners, put it, there is growing doubt about whether AI investments will deliver the returns everyone hopes for right now.