SpaceX CEO Elon Musk attends a press conference held by President Donald Trump with AI executives after a conference on artificial intelligence outside the West Wing of the White House in Washington, September 29, 2026.
Finn Gomez | Getty Images
Shares of major neocloud stocks fell on Monday after Elon Musk said more than 200 companies in the sector could go bankrupt.
Nevius, coreweave and Airen Both stocks fell more than 4% in pre-market trading, adding pressure to a sector already facing investor concerns about whether debt-financed expansions and massive AI infrastructure developments will pay off.
“As of the past few weeks, the bond market has almost completely cut off access to capital for companies that do not generate substantial revenue independently from AI data centers,” Musk said in a post on X on Sunday.
“That means more than 200 neoclouds will suffer guppy-level extinction and consolidation. Some will survive, but not many,” he added.
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