Shares of Neocloud operators fell sharply midday Tuesday as investors re-evaluated a new round of AI spending concerns facing the sector and a sharp rise in long-term interest rates. Among them, CoreWeave (CRWV) fell 6.8%, Nebius Group (NBIS) fell 5.2%, and TeraWulf (WULF) fell 6.5%.

The decline was mainly affected by three factors: First, the annual recurring revenue (ARR) data of Anthropic and OpenAI were lower than market expectations; second, a Wall Street Journal analysis found that nine top technology companies have about $3 trillion in off-balance sheet commitments, mainly related to AI, and these obligations are growing faster than traditional capital expenditures; most importantly, the 30-year US government bond yield rose to 5.33%, a 19-year high, pushing up the cost of capital and putting pressure on the capital-intensive Neocloud business model.