Business · Companies · 4 hrs ago
AI infrastructure stocks slide as Solidigm cancels IPO plans
AI infrastructure shares fell sharply this week, with CoreWeave, Nebius and IREN each losing more than 30% in October.
SK Hynix canceled plans for a US IPO of its Solidigm unit, which makes storage products for data centers, citing market conditions and share-price trends.
Meta reported negative free cash flow of more than $2 billion in the third quarter and raised its minimum forecast for full-year spending on equipment and infrastructure to $135 billion.
Big technology companies have been investing heavily in AI infrastructure as demand for AI models and services grows.
But investors are questioning whether the returns will justify the cost, and CoreWeave’s borrowing costs have risen to levels generally seen as signaling distress.
Alphabet, Microsoft and Amazon are due to report earnings next week, giving investors more information about the spending plans of major technology companies.
AI infrastructure stocks came under pressure this week as investors questioned the returns on heavy spending and risks facing cloud providers.
SK Hynix said on Thursday that it had canceled plans for an initial public offering of its U.S.-based Solidigm unit, citing market conditions.
Shares of CoreWeave, Nebius and IREN fell sharply, with each down more than 30% in October.
CoreWeave’s credit-default-swap spreads rose above 11%, while yields on its 2031 and 2032 unsecured notes topped 15%.
Nvidia CEO Jensen Huang remained bullish, saying demand for neoclouds was very strong.
- Who
- SK Hynix canceled the planned IPO of its U.S.-based Solidigm unit. AI infrastructure companies and investors also faced pressure.
- What
- Solidigm’s planned IPO was withdrawn as AI infrastructure stocks fell amid concerns about market volatility, credit risks and the returns on AI investment.
- When
- The IPO cancellation was announced Thursday. The article was published October 23, 2026.
- Where
- The market turmoil affected companies in the United States, South Korea and Australia.
- Why
- SK Hynix cited market conditions and share-price trends. Investors were also concerned that returns on AI investment might not justify the spending.
Nvidia CEO Jensen Huang
AI investment skeptics
Aspect
Nvidia CEO Jensen Huang
Huang said demand for neoclouds was very strong and that the capital shortage would be resolved.
AI investment skeptics
Skeptics questioned whether returns on AI investment would justify the required spending.
Aspect
Nvidia CEO Jensen Huang
Huang said demand for capital was greater than its availability.
AI investment skeptics
Investors sold neocloud shares, and CoreWeave’s credit-market indicators pointed to heightened concern about default.
Shares of South Korean cloud provider Elice Group dropped 30% in their market debut.
Shares of Australian data center operator NextDC fell 39.5% after it cut its annual earnings forecast.
SK Hynix said it had discontinued its review of an IPO for its Solidigm unit, citing market conditions and share-price trends.
Meta shares fell 7% after it reported negative free cash flow of more than $2 billion for the third quarter and raised the floor of its full-year capital spending forecast to $135 billion.
The Nasdaq fell again and ended the week down 0.7%.
- Solidigm
- SK Hynix unit that makes NAND and SSD storage for data centers
- IPO plans
- Canceled by SK Hynix on Thursday
- CoreWeave CDS spreads
- Above 11%
- CoreWeave unsecured-note yields
- More than 15% for 2031 and 2032 notes
- Neocloud outlook
- Gartner predicts 80% will cease operations or be absorbed by 2030
- Meta full-year capital spending floor
- Raised to $135 billion from $130 billion
1 source
What people are saying
While an IPO was expected to ease investment burdens and expand capacity for shareholder returns, the review has been discontinued in light of market conditions and share price trends
demand for the neoclouds is off the charts.
The demand of the capital is much greater than the availability of the capital
What investors are doing is throwing every baby out with the bathwater and saying anyone who is a neocloud