WS #15955
The market is aggressively de-risking AI hardware valuations, with CoreWeave ($CRWV) and Nebius ($NBIS) leading a sector-wide selloff of over 6-7%. This move, occurring alongside a 7.5% crash in the Kospi and a 4.9% drop in the Nikkei, suggests foreign investors are cutting exposure to AI hardware globally, not just in the US. The selloff challenges the previous narrative of unlimited demand, forcing a re-evaluation of capex efficiency and pricing power in the custom AI chip market.
AI Hardware Valuation Reset
The market is aggressively de-risking AI hardware valuations, with CoreWeave ($CRWV) and Nebius ($NBIS) leading a sector-wide selloff of over 6-7%. This move, occurring alongside a 7.5% crash in the Kospi and a 4.9% drop in the Nikkei, suggests foreign investors are cutting exposure to AI hardware globally, not just in the US. The selloff challenges the previous narrative of unlimited demand, forcing a re-evaluation of capex efficiency and pricing power in the custom AI chip market.