South Korean cloud company Elice saw its shares plunge more than 30% during its overnight IPO, raising investor concerns about overcapacity in the AI-dedicated computing power sector. This decline weighed on U.S. tech stocks, with CoreWeave down 4% in premarket, Nebius off roughly 5% and Vertiv down 2%. HSBC maintained its reduce rating on CoreWeave with a price target of $39, implying 36.5% downside. Analyst Abhishek Shukla noted that debt market woes and moderating LLM revenues are exacerbating structural concerns for neoclouds.
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