AI Investment Crisis Deepens as Neocloud Stocks Plunge and Credit Risks Soar

Investment in AI infrastructure is under pressure, with Neocloud stocks falling over 30% and credit risk for Meta, Nvidia, and Oracle hitting record highs. SK Hynix also canceled the IPO of its subsidiary Solidigm amid concerns that AI returns may not justify massive spending. The Nasdaq fell 0.7% for the week, led by a 6% drop in Alphabet shares. CoreWeave's credit default swap spreads exceeded 11%, and its unsecured bond yields rose above 15%, signaling severe financial risk. Meta reported negative free cash flow of over $2 billion in Q3 and raised its capital expenditure forecast. Gartner analysts predict up to 80% of Neocloud companies may fail or be acquired by 2030. Despite Nvidia CEO Jensen Huang's optimism about high demand, investor concerns persist, with Oracle's stock down over a third this year and facing potential credit downgrade risk.