AI Infrastructure Stocks Slide as Rates Pressure Debt-Heavy Firms

Shares of heavily indebted artificial intelligence companies fell Wednesday amid growing concerns over rising interest rates and the cost of financing sector expansion. Firms that had rallied earlier this year on AI optimism were among the worst performers in major U.S. indices. Specialized cloud companies Nebius and CoreWeave dropped 15.1% and 9.5%, respectively, with CoreWeave losing about a quarter of its value this month and Nebius nearly 20%. Data center operators Applied Digital and IREN fell 8.8% and 9.9%, while Oracle shares lost 7.2%. Server makers Dell and HPE declined 10.3% and 6.4% after Barclays downgraded their ratings to "equal-weight" from "overweight." The selloff reflects broader market sensitivity to borrowing costs for capital-intensive AI infrastructure projects. Most of Oracle's dollar-denominated bonds also retreated, signaling credit market stress across the sector.