# Wall Street Just Invented the ‘Neocloud’ ETF. It Owns the Companies Renting AI Compute to Everyone Else > Source: > Published: 2026-08-25 19:34:17+00:00 **Invesco QQQ Trust** ([NASDAQ:QQQ](https://247wallst.com/companies/QQQ/)) offers AI exposure through the customers rather than the suppliers. QQQ’s top holdings are the hyperscalers spending on [AI infrastructure](https://247wallst.com/investing/2026/04/30/ai-data-center-spending-rushes-toward-800-billion/). That has worked, but QQQ dilutes the pure AI-compute rental trade through hundreds of billions in unrelated market cap. On August 6, 2026, Wall Street launched the first ETF built to isolate that trade: a “Neocloud” fund holding the companies renting AI compute back to those same hyperscalers. It landed the same day as a sister [photonics and optics ETF](https://247wallst.com/investing/etf/2026/08/10/lytes-72-million-debut-masks-a-concentration-bet-on-three-optical-giants/), which carries a 0.65% management fee. The question is whether the trade justifies moving away from QQQ. ## What Broad AI Funds Actually Give You QQQ’s AI thesis is second-order. Its megacap holdings sell chips, rent cloud services, and build models, but AI sits inside diversified businesses generating cash from unrelated products. Neocloud names are 100% AI infrastructure, contracted years out, and financed against those contracts. If [hyperscaler capex](https://247wallst.com/investing/2026/08/22/ais-absurd-spending-boom-hyperscalers-are-spending-102-of-cloud-revenue-on-capex/) doubles again, QQQ moves modestly. The Neocloud basket moves with it directly. ## Names Inside the New ETF **CoreWeave** ([NASDAQ:CRWV](https://247wallst.com/companies/CRWV/)) is the anchor. Q2 revenue hit $2.6 billion, up 112% year over year, with a revenue backlog of $104 billion and more than $25 billion in net new customer commitments added early in Q3. Adjusted EBITDA margin was 59%. CEO Michael Intrator described it as an inflection point where “scale began to translate into expanding operating leverage.” **Nebius Group** ([NASDAQ:NBIS](https://247wallst.com/companies/NBIS/) | [NBIS Price Prediction](https://247wallst.com/companies/nbis/price-prediction)) grew revenue 454% to $582 million, with a first-ever capacity auction clearing 15% above its highest prior Blackwell price. **Applied Digital** ([NASDAQ:APLD](https://247wallst.com/companies/APLD/)) sits on $36 billion of total contracted lease value, with roughly 76% tied to investment-grade hyperscalers. **TeraWulf** ([NASDAQ:WULF](https://247wallst.com/companies/WULF/)) signed a 20-year, roughly $19 billion lease with Anthropic for 401 megawatts at its Kentucky campus. IREN inked a five-year, $3.4 billion AI Cloud contract with NVIDIA tied to the eventual deployment of 600,000 GPUs. Lumentum is the optics arm: fiscal Q4 revenue jumped 109% to $1.01 billion, with non-GAAP operating margin at 36.6%. ## Where This Basket Actually Wins Against QQQ ## Tradeoffs Worth Naming In the last week alone, CoreWeave fell 18.63%, and Nebius fell 21.55%. CoreWeave’s Q2 interest expense reached $640 million, versus $267 million a year earlier. TeraWulf posted a $939.92 million net loss driven mostly by non-cash warrant marks. IREN took a $140.4 million non-cash impairment, retiring mining hardware. [Customer concentration](https://247wallst.com/investing/2026/08/10/48-of-google-cloud-revenue-next-year-could-come-from-just-2-companies-that-have-still-never-turned-a-profit/) is real: Nebius disclosed three customers representing 24%, 21%, and 14% of revenue, and TeraWulf leans on Anthropic and Google’s $600 million credit backstop for Fluidstack. None of these names pay a dividend. The idea is to ride the AI infrastructure wave with guardrails. We wrote a free guide on seven suppliers powering the buildout, from power to cooling to networking, here: [7 Stocks Powering the AI Boom (That Aren’t Chipmakers)](https://247wallst.com/pages/ai-power-seven-offer-d905ec99.html). ## How to Think About the Swap ## Signals That Would Change the Call *Contact [email protected] for any questions or corrections.*