AI Stocks Slide as CoreWeave, Nebius Fall With Nvidia

CoreWeave fell about 10% and Nebius about 12% on Nov. 12 as AI stocks sold off with Nvidia after its CEO exit and Nebius guidance stoked capex fears.

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What Happened to AI Stocks on Nov. 12?

AI stocks fell on two overlapping shocks: a leadership change at the sector's dominant chipmaker and a disappointing outlook from one of its biggest customers.

Nvidia announced that Huang had resigned as president, CEO and board member effective immediately. CFO Colette Kress was named interim CEO. Nvidia shares fell as much as 13% in early trading, pushing its market value below $4 trillion for the first time since July 2025. The stock recovered much of the loss and closed down 4.3%.

The selloff spread across the AI supply chain. IREN (IREN) fell about 7% and Applied Digital (APLD) fell about 9%. Among chipmakers, Micron (MU) dropped roughly 6% and Marvell (MRVL) also fell sharply. AMD (AMD) rose about 2% and Broadcom (AVGO) gained about 1.4% as investors rotated within the group. European technology shares lost about 1%, and Japanese and South Korean benchmarks slipped about 0.7%.

On Wall Street, the Dow, S&P 500 and Nasdaq each ended roughly 0.3% to 0.4% lower. The 10-year Treasury yield rose above 5%, adding pressure to long-duration growth names.

Why Did Nebius and CoreWeave Fall So Sharply?

Nebius and CoreWeave fell harder than Nvidia because their business models depend on borrowed capital and long build-out timelines, which makes them sensitive to any doubt about spending returns.

Nebius reported third-quarter revenue of $980.8 million, above the $907.5 million consensus and up 571% from a year earlier. The loss was 13 cents per share. The reaction turned on the outlook:

• 2026 revenue is now expected at the low end of the $3.0 billion to $3.4 billion range, as delays at third-party data centers push some sales into next year.
• 2026 capital expenditure was raised to $27 billion, from a prior range of $20 billion to $25 billion.
• 2027 capex is projected at $40 billion to $45 billion, well above the roughly $28.8 billion consensus.
• 2027 revenue is targeted at $12 billion to $13 billion.

Nebius opened with a double-digit drop. It traded about 14% lower at midday near $133.67, and some reports put the losses near 18% by the close. CoreWeave followed, reflecting the shared exposure to financing costs, construction timing and demand from a small group of large AI customers. The group had already been under strain, with both stocks down roughly half from their early-October levels through Nov. 6 amid concern that new state governments could slow data center permitting after the midterm elections.

How Does Nvidia's Leadership Change Affect AI Infrastructure?

Huang's exit raises questions about strategy continuity, but the near-term operating impact on neoclouds is indirect.

Nvidia supplies the GPUs that CoreWeave and Nebius buy and, in some cases, has invested in the companies directly. Both operators rely on Nvidia for allocation of scarce hardware and for credibility with lenders. A permanent successor has not been named, and the interim arrangement leaves product roadmaps and supply commitments formally unchanged. The market response nonetheless shows how much of the ai stocks trade is priced on Huang's personal standing with customers and partners.

Market Reaction and Valuation Context

Nvidia's drop left it trading at about 12 times forward earnings, the lowest multiple since November 2012, and it has shed roughly $300 billion in market value since the board's review of the matter became public on Sunday. That valuation reset contrasts with the capital intensity now visible at the neoclouds. Nebius alone plans more than $65 billion of combined spending across 2026 and 2027, against 2026 revenue guided to roughly $3 billion.

What Comes Next for AI Cloud Stocks?

The next test is whether financing stays available at tolerable cost. With the 10-year yield above 5%, debt-funded data center growth faces a higher hurdle, and CoreWeave's reported bond yields have already approached 15% during the autumn.

Three items will set direction in the coming weeks:

• Nvidia succession: the naming of a permanent CEO and any change in capital allocation or customer financing.
• Neocloud guidance: further disclosures on data center delivery schedules and contracted backlog.
• Rates: the path of Treasury yields and the Federal Reserve's stance, which determine borrowing costs for the sector.

Outlook

The Nov. 12 session showed how quickly sentiment can reverse in AI infrastructure. CoreWeave fell about 10%, Nebius about 12% to 14%, and Nvidia closed 4.3% lower after intraday losses of 13%. Strong revenue growth did not offset rising capex and delayed capacity, and a leadership vacuum at Nvidia added uncertainty. Financing costs, delivery timelines and the identity of Nvidia's next permanent chief will drive the sector's next move.