AI infrastructure stocks slide on rate-hike jitters

Shares in debt-dependent artificial intelligence companies fell on Wednesday amid growing concerns over higher interest rates and the costs of financing the industry's expansion. Companies that had risen earlier this year on AI optimism were among the worst performers on major U.S. exchanges. Neocloud firms 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 REN fell 8.8% and 9.9%, while Oracle shares declined 7.2%. AI server makers Dell and HPE fell 10.3% and 6.4% after Barclays downgraded them to neutral from overweight. The declines reflect investor anxiety about rising borrowing costs for capital-intensive AI infrastructure projects. The selloff also affected Oracle's dollar bonds, indicating broader credit market concerns.