Shares of Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) were down roughly 14% intraday to about $214 Wednesday morning, and CoreWeave (NASDAQ:CRWV) shares dropped about 4% at roughly $89. However, both stocks are now rebounding alongside the broader Nasdaq Composite. As of 12:30 p.m. ET, Nebius had rebounded to a 7% decline and CoreWeave was slightly up on the day.
The morning started off with day two of a rotation out of technology stocks and into more defensive sectors like Healthcare. The main ‘trigger’ for the movements was a Wall Street Journal analysis of off-balance-sheet AI commitments. Let’s dive into the news and check on the neocloud space.
WSJ Off-Balance-Sheet Report Reprices the Group #
The catalyst is a Wall Street Journal piece by Peter Rudegeair and Peter Santilli arguing that “a huge swath of their coming financial obligations aren’t reflected on their balance sheets.” The WSJ tallied roughly $3 trillion of
off-balance-sheet commitmentsmostly related to AI across nine large tech companies, versus about $600 billion of traditional capex over the past year. Per-company figures cited: Alphabet around $900 billion, Meta more than $600 billion, Microsoft nearly $600 billion, Amazon closing in on $300 billion, and Nvidia more than $200 billion.
Neoclouds sit at the sharp end of that story. They finance enormous GPU buildouts with debt and long-dated leases, then rent capacity to the hyperscalers and AI labs whose commitments the WSJ just scrutinized. CoreWeave’s own SEC filings underline the leverage picture. Total liabilities reached $72.05 billion against $5.02 billion of equity in Q2 2026, with Nebius total liabilities climbing from $5.29 billion in Q3 2025 to $17.62 billion by Q2 2026 and $12.1 billion in uncommenced lease obligations.
One positive piece of news: 10-year rates are down four basis points today to 4.66%. 30-Year yields have declined 8 basis points to 5.21%. A large driver of yesterday’s rotation out of technology and momentum names was rising interest rates. The Treasury announced this morning that it would double debt buybacks in an attempt to steady the bond market.
Why Nebius Is Down the Most #
Nebius is seeing the largest intraday decline amongst the neocloud group. The company issued a $4.5 billion convertible bond offering, which could be adding pressure to shares. The company issuing these notes right now could be read as management taking advantage of recent gains in the company’s share price.
A simpler read on today’s movement is positioning. NBIS entered Wednesday up roughly 29% over the past week, about 40% over the past month, nearly 197% year to date, and roughly 242% over the past year. A stock that has nearly tripled in 2026 and added more than a quarter of its value in five sessions is the first thing traders trim when AI risk appetite cools.
Peers Follow, but Galaxy Holds #
The de-rating was group-wide this morning. Aside from Nebius, every stock in this group has turned positive as of 12:40 p.m. ET.
| Ticker | Intraday Move | YTD |
|---|---|---|
| NBIS | -13.77% | +196.79% |
| CRWV | -4.46% | +30.11% |
| IREN | -5.67% | +11.2% |
| WULF | -5.15% | +35.94% |
| HUT | -5.52% | +75.86% |
As noted earlier, Treasury doubled its debt buyback operation Wednesday, pushing yields lower, which should help capital-intensive borrowers. Neoclouds finitially fell on the day, but macro news has been generally *positive *for these stocks today.
What to Watch #
The big question is whether yesterday’s rotation will turn into an extended sell-off in names attached to the AI infrastructure trade. This afternoon is broadly providing relief, but there will likely be elevated volatility in hardware names for an extended period as the market debates whether or not we’re headed for an overbuild that could create substantial downside for names not only in AI infrastructure but also neoclouds themselves.
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