Neocloud stocks retreat as Musk warns of ‘guppy-level death and consolidation’

[AI Neoclouds Computing and Smart City Data Connection.] Shares of major neocloud companies fell in premarket trading Monday after Elon Musk warned that more than 200 firms in the sector could face widespread failures and consolidation amid tightening credit markets. Nebius (NBIS [https://seekingalpha.com/symbol/NBIS]), CoreWeave (CRWV [https://seekingalpha.com/symbol/CRWV]) and Iren (IREN [https://seekingalpha.com/symbol/IREN]) each dropped more than 4% before the market open, adding to investor concerns over debt-fueled expansion and whether massive investments in AI infrastructure will generate sufficient returns. “200+ neoclouds are going to see guppy-level death and consolidation.