The riskier corners of the AI trade are getting slammed, and Nvidia $NVDA was not strong enough to pull them out of the downturn. Its results disappointed the market, but the real damage is landing on the smaller, more volatile stocks that have been riding the AI wave all year.
Cipher Mining $CIFR ( ▲ 18.09% ) and IREN $IREN ( ▲ 14.74% ) , two bitcoin miners that recently pivoted into data center and AI hosting businesses, each fell more than 7 percent. Investors seem to be turning away from anything tied to miners, GPU infrastructure, or rapid expansion plans.
The neocloud players are also feeling the pressure. CoreWeave $CRWV ( ▲ 2.72% ) and Nebius $NBIS ( ▲ 10.38% ) both dropped more than 5 percent. CoreWeave now sits 66 percent below its all-time high, and Nebius is dealing with a 40 percent drawdown, a sign that the market is rethinking its enthusiasm for newer cloud providers.
Oklo $OKLO ( ▲ 1.57% ) is down another 8 percent and has now lost over half its value since mid-October. Its price-to-sales ratio has not budged because the company still has no revenue, a detail that is becoming harder for investors to ignore as sentiment cools.
Bloom Energy $BE ( ▲ 6.19% ) is also sliding. The stock has fallen more than 40 percent from its peak, and options traders are leaning heavily bearish, with its put-to-call ratio hitting a four-month high by late morning.
Even bitcoin $BTC ( ▲ 5.4% ) is caught in the downdraft. The cryptocurrency fell below 85,000, adding to the pressure across speculative assets.
The downturn first started bubbling up in October and now seems like it was the first crack in sentiment. If investors are suddenly unsure about firms as large as Oracle, the riskier AI names usually find themselves out of favor pretty quickly.