Rising long-term rates and lower-than-expected AI revenue growth spark a selloff in capital-intensive cloud stocks.
Neocloud operators CoreWeave, Nebius Group, and TeraWulf fell 6.8%, 5.2%, and 6.5%, respectively, as the 30-year Treasury yield surged to a 19-year high of 5.25%. Higher borrowing costs are compressing the valuation of future revenues for these capital-heavy businesses.
Anthropic and OpenAI reported annual recurring revenue of $65 billion and $40 billion, respectively, below whisper estimates of over $80 billion for Anthropic. Investors had also anticipated 2028 revenue of $190 billion to $200 billion, but Anthropic’s projections fell short of those expectations.
The selloff reflects broader concerns about AI spending sustainability and the impact of rising rates on high-growth, capital-intensive sectors.