CoreWeave and other neocloud stocks drop after Microsoft capex comes in below expectations

Shares of neocloud companies like CoreWeave and Nebius fell after Microsoft reported $45.2 billion in capital expenditures for the quarter, below analyst expectations. Microsoft's lower capex suggests slower data center capacity expansion, impacting infrastructure partners heavily reliant on AI workloads. Market concerns over rising interest rates and funding challenges for neoclouds persist, with predictions of significant industry consolidation by 2030.