CoreWeave and IREN shares drop as Nvidia CEO exit and Nebius spending plans rattle neoclouds

CoreWeave and IREN shares fell sharply on Wednesday, with CoreWeave dropping about 8.6% and IREN losing 10% by 10:30 AM EDT, reversing much of the previous day's gains driven by CoreWeave's optimistic quarterly results. The decline was primarily triggered by Nvidia CEO Jensen Huang's resignation on Thursday, with CFO Colette Kress named interim CEO, creating uncertainty about chip supplies that neocloud operators depend on. Additionally, CoreWeave's planned $4 billion chip-backed debt offering highlighted the sector's heavy reliance on leverage for growth. Peer Nebius also fell over 10% despite beating Q3 revenue estimates at $980.8 million, as management significantly raised investment plans to $27 billion this year and $40-45 billion in 2027, raising concerns about financing and returns across the neocloud sector.