Korean Cloud IPO Crash and Gartner Warning Trigger AI Infrastructure Sell-Off
Shares of South Korean cloud provider Elice Group fell 30% on their market debut, triggering a broader decline in U.S. data center and chip stocks. Investors are increasingly worried about overcapacity in AI computing and the profitability of neoclouds, a concern amplified by a Gartner report predicting that 80% of such firms may fail by 2030.