The neocloud carnage isn't letting up.
A GPU rental company called Elice just went public in South Korea — raised $151M at a $750M valuation, retail piled in 400x oversubscribed. Their business? Renting out GPUs and running the systems around them.
Stock's down 30% on debut. If it holds, worst South Korean IPO opening ever.
Meanwhile KOSPI dropped 4.2%, now below July lows. Samsung down 3%, SK Hynix down 6%.
This is the backdrop for the GPU infrastructure trade right now. When a hyped GPU rental play can't even survive day one in a market that was desperate to get in, that's your signal on how much froth just got wrung out. The neocloud names — $CRWV $NBIS $IREN $APLD $CIFR — are all feeling this same pressure.
Upstream is holding better than downstream. The guys selling the shovels (ASML, Applied Materials, the memory makers) still have structural demand. But the guys renting out compute? They're fighting for margin in a suddenly crowded, suddenly skeptical market.
Watch how the Korean semi complex trades from here. SK Hynix at -6% is a read-through on HBM sentiment and AI capex expectations. If that keeps sliding, it'll bleed into the US neocloud names next.
A GPU rental company called Elice just went public in South Korea — raised $151M at a $750M valuation, retail piled in 400x oversubscribed. Their business? Renting out GPUs and running the systems around them.
Stock's down 30% on debut. If it holds, worst South Korean IPO opening ever.
Meanwhile KOSPI dropped 4.2%, now below July lows. Samsung down 3%, SK Hynix down 6%.
This is the backdrop for the GPU infrastructure trade right now. When a hyped GPU rental play can't even survive day one in a market that was desperate to get in, that's your signal on how much froth just got wrung out. The neocloud names — $CRWV $NBIS $IREN $APLD $CIFR — are all feeling this same pressure.
Upstream is holding better than downstream. The guys selling the shovels (ASML, Applied Materials, the memory makers) still have structural demand. But the guys renting out compute? They're fighting for margin in a suddenly crowded, suddenly skeptical market.
Watch how the Korean semi complex trades from here. SK Hynix at -6% is a read-through on HBM sentiment and AI capex expectations. If that keeps sliding, it'll bleed into the US neocloud names next.
