--- title: "CRWV, NBIS, IREN: Why Did Neocloud Stocks Fall Hard on 7/29/26?" type: "News" locale: "en" url: "https://longbridge.com/en/news/294348024.md" description: "Shares of neocloud firms CoreWeave, Nebius, and IREN plummeted on July 29 amid a broader chip stock sell-off. The decline was driven by investor caution over rising debt costs for AI infrastructure, highlighted by CoreWeave's request for higher interest rates on a $2.6 billion loan. Despite heavy borrowing by these companies to fund expansion, concerns persist regarding increasing competition from tech giants like SpaceX and Meta." datetime: "2026-07-30T10:31:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294348024.md) - [en](https://longbridge.com/en/news/294348024.md) - [zh-HK](https://longbridge.com/zh-HK/news/294348024.md) --- # CRWV, NBIS, IREN: Why Did Neocloud Stocks Fall Hard on 7/29/26? Shares in neocloud companies CoreWeave (CRWV), Nebius (NBIS), and IREN Limited (IREN) dropped sharply on Wednesday. This came amid a general sell-off in chip stocks. However, it is also likely due to a debt move by CoreWeave at a time investors are wary of the amount of debt used to fund AI buildout. ### Claim 55% Off TipRanks Explore CWVX for 2X leverage on CRWV ## **Lenders Demand Higher Returns to Fund AI** On Wednesday, _Bloomberg_ reported that CoreWeave is now looking to raise interest rates on a $2.6 billion loan tied to capacity expansion for customers such as AI startup Anthropic. This report comes weeks after media reports of the fundraising effort first emerged. In other words, lenders might be becoming more cautious about funding AI projects. Already, this trend is obvious in credit markets. Here, the costs of credit default swaps for tech companies have been rising sharply. These are financial contracts used to hedge against tech companies' debt. The developments show that AI is becoming more expensive to finance. What's more, all three neocloud companies have been taking on debt to fund their buildout. ## **Neocloud Firms Take On Debt** In June, CoreWeave announced a $3.5 billion fundraise through a private senior notes offering. This followed a $3.1 billion loan facility it secured in May to expand its capacity. The facility is backed by its GPU assets. It was also described as the first publicly syndicated loan backed by high-performance computing infrastructure. Similarly, Nebius earlier this month also secured $775 million in a syndicated loan. The facility is backed by its GPU infrastructure tied to an existing customer contract. Not to be left out, IREN Limited has also expanded its capital-raising efforts. The Sydney-based company recently finalized a $3.7 billion finance package. The facility is for its $9.7 billion deal with Microsoft (MSFT). ## **Debt Growth Comes amid Rising Competition** Meanwhile, these debt moves come even as some analysts are worried about rising competition in the neocloud industry from bigger companies. Notably, SpaceX (SPCX) has begun selling its excess GPUs to Alphabet's (GOOGL) Google and Anthropic. Meta (META) is also reportedly looking to follow a similar pattern. ## **Which Neocloud Stock Is the Best Buy?** All three neocloud stocks highlighted in this article currently carry a Moderate Buy consensus rating from Wall Street, according to TipRanks' Stock Comparison tool. However, IREN (IREN) currently leads the pack with about 157% upside. This is based on an average price target of $75.18. ### Related Stocks - [NBIS.US](https://longbridge.com/en/quote/NBIS.US.md) - [CRWV.US](https://longbridge.com/en/quote/CRWV.US.md) - [IREN.US](https://longbridge.com/en/quote/IREN.US.md) - [CORD.US](https://longbridge.com/en/quote/CORD.US.md) - [CRWU.US](https://longbridge.com/en/quote/CRWU.US.md) - [NEBX.US](https://longbridge.com/en/quote/NEBX.US.md) - [IRE.US](https://longbridge.com/en/quote/IRE.US.md) - [CWVX.US](https://longbridge.com/en/quote/CWVX.US.md) - [NBIL.US](https://longbridge.com/en/quote/NBIL.US.md) - [CRWG.US](https://longbridge.com/en/quote/CRWG.US.md) - [NBIG.US](https://longbridge.com/en/quote/NBIG.US.md) - [IREX.US](https://longbridge.com/en/quote/IREX.US.md) - [SPCX.US](https://longbridge.com/en/quote/SPCX.US.md) - [SPCH.US](https://longbridge.com/en/quote/SPCH.US.md) - [NBIZ.US](https://longbridge.com/en/quote/NBIZ.US.md) - [SPCF.US](https://longbridge.com/en/quote/SPCF.US.md) - [SPAL.US](https://longbridge.com/en/quote/SPAL.US.md) - [SNK.US](https://longbridge.com/en/quote/SNK.US.md) - [SSPC.US](https://longbridge.com/en/quote/SSPC.US.md) - [SPCU.US](https://longbridge.com/en/quote/SPCU.US.md) - [LOFF.US](https://longbridge.com/en/quote/LOFF.US.md) - [CWY.US](https://longbridge.com/en/quote/CWY.US.md) - [IREZ.US](https://longbridge.com/en/quote/IREZ.US.md) ## Related News & Research - [Is IREN stock still a buy after it surges 20% on new contracts?](https://longbridge.com/en/news/293498463.md) - [QUICK SPARK: Nvidia Backed Nebius Could Be The AI Stock Investors Are Missing, This ETF CEO Says](https://longbridge.com/en/news/293935538.md) - [SpaceX lockup expiry: Morgan Stanley believes 'largely unchanged' fundamentals create attractive entry point at current levels](https://longbridge.com/en/news/293785215.md) - [SpaceX stock-purchasing by Congress members fuels conflict concerns](https://longbridge.com/en/news/294051253.md) - [SpaceX faces House Energy Committee demand to tour its AI data centers in Memphis](https://longbridge.com/en/news/294277242.md)