Investors' debt and growth fears spark AI data center selloff

Business Oct 22, 2026

The AI data center world just hit a rough patch: stocks are dropping fast as investors worry about too much debt and risky growth.

In October alone, short sellers (basically, people betting on stocks to fall) have scored $6 billion in paper profits.

Companies like CoreWeave and Nebius have been hit especially hard.

CoreWeave down nearly 30% Nebius slips

CoreWeave's stock has dropped nearly 30% this month, and Nebius isn't far behind.

Even in early Thursday trading, both were down more than 4%. Other names like IREN, Applied Digital, and Core Scientific also saw notable dips.

Short interest is way up (CoreWeave's at 23.7% of its free float), and across the sector, more investors are betting against these companies as market uncertainty continues.