Elice Shares Drop 30% in Debut as U.S. AI Cloud Stocks Diverge

Shares of U.S. AI cloud companies moved in different directions after Elice Group’s South Korean market debut renewed investor concern that computing capacity may outpace demand for artificial intelligence services.

Elice is a South Korean provider of AI-related cloud services. It offers businesses cloud computing equipment, training libraries and application interfaces. Its shares fell 30% during the debut.

CoreWeave was up 1.6% after falling 4% shortly after the U.S. market opened. Nebius was down about 1%, while Iren fell about 4%.

The moves came amid concerns about excess computing capacity and lackluster AI revenue. Debt-market pressures and moderating revenue from large language models have added to concerns about neoclouds, which provide cloud computing capacity for AI. CoreWeave is heavily leveraged.

Last week, Gartner projected that 80% of neoclouds could stop operating independently by 2030. The firm said AI revenue may not make all planned AI capital spending profitable between 2027 and 2030.