---
title: "Neocloud stocks: what a neocloud is, and what the eight listed ones did to their holders"
url: https://portfolio-terminal.com/blog/neocloud-stocks-what-is-a-neocloud
author: "Julien Esnault"
publisher: "Portfolio Terminal"
published: 2026-10-13
type: guide
tags: ["Research", "Stocks"]
summary: "A neocloud rents Nvidia GPUs to AI companies and does little else. We measured the eight listed in the US from March 28, 2025 to October 12, 2026: $1,000 split across them became $5,989 (Nvidia: $2,069), but their median worst fall was 53.5%, against 20.2% for Nvidia."
---

> **Source:** Julien Esnault, "Neocloud stocks: what a neocloud is, and what the eight listed ones did to their holders", Portfolio Terminal, 2026-10-13. https://portfolio-terminal.com/blog/neocloud-stocks-what-is-a-neocloud
> When you use a figure from this article, cite it with the line above and link to the URL. Figures are checked against the primary data named in the Sources line at the end.

## In short

- A neocloud rents GPU computing to AI companies and does little else; CoreWeave (CRWV), the largest listed one by revenue, had second-quarter 2026 revenue of $2,575 million, up 112.5% on the year, and owed $35.1 billion of debt on June 30, 2026.
- From March 28, 2025 to October 12, 2026, $1,000 split equally across the eight US-listed neoclouds (CRWV, NBIS, IREN, APLD, CIFR, WULF, HUT, CORZ) became $5,989, against $2,069 in Nvidia (NVDA) and $1,602 in the Invesco QQQ fund.
- The eight US-listed neocloud stocks fell a median 53.5% from a high at their worst between March 28, 2025 and October 12, 2026, against 20.2% for Nvidia; CoreWeave fell 66.9%, from $183.58 on June 20, 2025 to $60.82 on July 29, 2026.
- $10,000 in the Invesco QQQ fund held $41.47 of the eight listed neoclouds and $819 of Nvidia on September 24, 2026; the Vanguard S&P 500 fund (VOO) held none of the eight on August 31, 2026.
- Nvidia owned 47,213,353 CoreWeave shares on June 30, 2026, worth $4.70 billion and 8.6% of CoreWeave’s shares, according to Nvidia’s 13F filing for that date.

# Neocloud stocks: what a neocloud is, and what the eight listed ones did to their holders

**Short answer:** a neocloud is a company that rents Nvidia GPUs to AI labs, and the eight listed in the US turned $1,000 into $5,989 from March 28, 2025 to October 12, 2026, against $2,069 in Nvidia. The price was the falls: a median 53.5% at their worst, against 20.2% for Nvidia.

The eight are CoreWeave (CRWV) and Nebius Group (NBIS), the two GPU clouds; IREN (IREN), which runs one too; Applied Digital (APLD), which builds and leases AI data centers; and four bitcoin miners turning their sites into AI hosting: Cipher Digital (CIFR), TeraWulf (WULF), Hut 8 (HUT) and Core Scientific (CORZ).

## The eight listed neoclouds, measured

Each is measured from CoreWeave's first close, $40.00 on March 28, 2025, so all eight cover the same 387 sessions. How we chose them is in the method at the end.

| Company (ticker) | What it is | Return, Mar. 28, 2025 → Oct. 12, 2026 | Worst fall from a high | Below its high on Oct. 12 | Volatility (a year) | Beta to Nvidia |
|---|---|---:|---:|---:|---:|---:|
| CoreWeave (CRWV) | GPU cloud | +100.7% | −66.9% | −56.3% | 110.6% | 1.18 |
| Nebius Group (NBIS) | GPU cloud | +841.6% | −48.3% | −26.7% | 108.6% | 1.19 |
| IREN (IREN) | bitcoin miner, now a GPU cloud too | +473.3% | −61.6% | −54.5% | 100.5% | 0.91 |
| Applied Digital (APLD) | AI data-center builder and landlord | +306.5% | −53.2% | −53.2% | 115.6% | 0.98 |
| Cipher Digital (CIFR) | bitcoin miner moving to AI | +460.3% | −55.4% | −55.4% | 111.2% | 1.06 |
| TeraWulf (WULF) | bitcoin miner moving to AI | +391.5% | −53.9% | −53.9% | 104.3% | 0.94 |
| Hut 8 (HUT) | bitcoin miner moving to AI | +627.3% | −41.7% | −35.9% | 100.9% | 1.12 |
| Core Scientific (CORZ) | bitcoin miner moving to AI | +100.8% | −48.5% | −48.5% | 75.1% | 0.90 |
| Nvidia (NVDA) | GPU maker | +106.9% | −20.2% | −5.4% | 40.2% | 1.00 |
| Invesco QQQ (QQQ) | Nasdaq-100 fund | +60.2% | −12.6% | −1.8% | 22.1% | 0.42 |

Returns include dividends (none of the eight pays one). The worst fall is the deepest close under an earlier high inside the window; volatility is the annualized standard deviation of daily returns; beta to Nvidia is how much the stock moved, on average, for each 1% Nvidia moved.

Three things in that table:

- **Every one of the eight beat the Nasdaq-100, and six of eight beat Nvidia.** Nebius returned 841.6%. Even the two weakest, CoreWeave and Core Scientific, roughly doubled.
- **The falls were deep everywhere.** CoreWeave closed at $183.58 on June 20, 2025, then at $60.82 on July 29, 2026: 66.9% lower. Four of the eight set their high on the same day, June 18, 2026, and Cipher Digital, TeraWulf and Core Scientific closed at their lowest since that high on October 12. The median worst fall was 53.5%, more than twice Nvidia's 20.2%.
- **They move with each other more than with Nvidia.** The median beta to Nvidia is 1.02, but the median correlation is only 0.41 (1 would mean they move in lockstep with Nvidia, 0 no link at all); between any two of the eight it averages 0.59. Their volatility, a median 106.5% a year, is 2.6 times Nvidia's 40.2%. Buying a neocloud is not a leveraged Nvidia: it is a bet on the same few AI customers paying their bills, which is why they fell together on October 8.

![Line chart of $1,000 invested on March 28, 2025: an equal-weight basket of the eight listed neoclouds peaks at $10,228 on June 18, 2026 and ends at $5,989 on October 12, 2026, against $2,069 in Nvidia and $1,602 in QQQ](https://portfolio-terminal.com/blog-sources/neocloud-basket-vs-nvidia-qqq-1000-dollars.png "Source: Yahoo Finance adjusted closes; equal-weight basket of CRWV, NBIS, IREN, APLD, CIFR, WULF, HUT and CORZ, rebalanced daily")

Holding all eight in equal parts smoothed it, but not much. The basket peaked at $10,228 on June 18, 2026 and fell 43.8% to its low on July 29; on October 12 it was 41.4% under the peak. It was still worth $5,989, almost three times what $1,000 in Nvidia became. The [volatility and beta guide](https://portfolio-terminal.com/blog/volatility-beta-risk) explains both measures if they are new to you.

## What is a neocloud?

A neocloud is a company whose business is renting GPU computing to AI labs and large companies, by the hour or under multi-year contracts. It buys or leases data centers with enough power, fills them with Nvidia GPUs and the networking between them, and sells the capacity. The customers train and run AI models on it: CoreWeave's largest customer in 2025 was Microsoft, at 67% of its revenue.

The word is short for "new cloud". Amazon Web Services, Microsoft Azure and Google Cloud, the hyperscalers, sell hundreds of services and pay for their data centers out of their other businesses. A neocloud sells one thing, computing time on GPU clusters, and pays for the chips with debt, share sales and customers' prepayments.

| | Hyperscaler (AWS, Azure, Google Cloud) | Neocloud (CoreWeave, Nebius) |
|---|---|---|
| What it sells | Hundreds of services: storage, databases, software, AI | GPU computing, plus the software to run it |
| Who pays for the chips | Cash from the rest of the business (shopping, Office, search ads) | Debt, share sales and customers' prepayments |
| Typical contract | Pay as you go, many small customers | Multi-year commitments from a few large customers |
| What the stock is a bet on | The whole company | AI demand for rented GPUs, and the financing holding up |

That is why the stocks swing: a neocloud's revenue is a few contracts, and its costs are interest and depreciation that arrive whether or not a customer renews.

## How a neocloud makes money, from CoreWeave's and Nebius's own numbers

CoreWeave (CRWV) is the largest listed neocloud by revenue. Its second quarter of 2026, from its 10-Q and its release:

| CoreWeave (CRWV), second quarter 2026 | |
|---|---|
| Revenue | $2,575M (+112.5% on a year) |
| Operating loss | $49M |
| Interest | $640M (24.9% of revenue) |
| Net loss | $626M |
| Spent on equipment | $6,422M |
| Debt, June 30, 2026 | $35.1B (3.4 times a year of revenue) |
| Cash, June 30, 2026 | $5.5B |
| Revenue backlog, June 30, 2026 | about $104B, plus more than $25B signed early in the third quarter |
| Largest customer | 36% of revenue (71% a year earlier); Microsoft was 67% of 2025 |

The operating result does not cover the interest, so the lenders are paid before the shareholders see a profit ([interest coverage](https://portfolio-terminal.com/blog/interest-coverage-ratio) explains the ratio), and the $35.1 billion of debt sits on $5.0 billion of equity ([debt to equity](https://portfolio-terminal.com/blog/debt-to-equity-ratio)). The customer list is getting less concentrated: the largest customer went from 71% of revenue to 36% in a year, though the three largest still made up 72%.

Nebius Group (NBIS), the Amsterdam company formerly called Yandex N.V., grows faster from a smaller base. Its second-quarter revenue was $582.3 million, up 454% on the year. Its adjusted EBITDA, the profit before interest, tax, depreciation and share-based pay, was $236.2 million. It spent about $5.7 billion on equipment and buildings in the quarter, 9.8 times its revenue. It ended June with $8 billion of cash, after raising $2.8 billion by selling 12.7 million new shares, and took its first secured loan, $775 million, in July. One accounting choice is worth reading: from 2026 Nebius depreciates its servers over five years instead of four, which spreads the cost of each GPU over more revenue.

## What the price pays for: revenue against market value

The last quarter each company reported, from its SEC filings (Nebius from its shareholder letter), with the market value at the October 12 close:

| Company (ticker) | Quarter ended | Revenue | On a year earlier | Market value | Value ÷ a year of revenue |
|---|---|---:|---:|---:|---:|
| CoreWeave (CRWV) | Jun 2026 | $2,575M | +112.5% | $44.3B | 4.3× |
| Nebius Group (NBIS) | Jun 2026 | $582.3M | +454.0% | $53.3B | 22.9× |
| IREN (IREN) | Jun 2026 | $137.2M | −26.7% | $12.4B | 22.7× |
| Applied Digital (APLD) | Aug 2026 | $341.9M | +322.4% | $7.0B | 5.1× |
| Cipher Digital (CIFR) | Jun 2026 | $24.8M | −43.0% | $5.4B | 54.3× |
| TeraWulf (WULF) | Jun 2026 | $44.8M | −6.0% | $6.7B | 37.3× |
| Hut 8 (HUT) | Jun 2026 | $74.9M | +81.4% | $10.5B | 35.1× |
| Core Scientific (CORZ) | Jun 2026 | $164.2M | +108.8% | $4.8B | 7.3× |

CoreWeave, the one with the most revenue, is the cheapest on this measure at 4.3 times. Cipher Digital trades at 54.3 times a revenue that fell 43.0% on the year: its price is a bet on AI leases that are not yet in its revenue line. A high multiple is not a verdict either way. It tells you how much of the price depends on contracts still to be delivered.

## You already own some, and much more Nvidia than neocloud

Most investors who ask about neocloud stocks already hold a little of them through an index fund. We opened the full holdings files the fund issuers publish, the ones behind our [ETF overlap pages](https://portfolio-terminal.com/etf-overlap), and added up the eight:

| Fund | Holdings as of | Neoclouds in $10,000 | Nvidia in $10,000 | Which of the eight |
|---|---|---:|---:|---|
| VOO | 2026-08-31 | $0.00 | $808 | none |
| VTI | 2026-08-31 | $8.63 | $687 | CRWV, APLD, CIFR, WULF, HUT, CORZ |
| QQQ | 2026-09-24 | $41.47 | $819 | CRWV, NBIS |
| VGT | 2026-08-31 | $27.12 | $1,773 | CRWV, IREN, APLD, CIFR, WULF, HUT, CORZ |
| SMH | 2026-09-24 | $0.00 | $1,928 | none |
| IWM | 2026-09-24 | $74.27 | $0 | CIFR, HUT, CORZ |
| ARKK | 2026-09-25 | $260.55 | $237 | CRWV |

[$10,000 in QQQ](https://portfolio-terminal.com/analyse/qqq) holds $41.47 of neoclouds and $819 of Nvidia. [VOO](https://portfolio-terminal.com/analyse/voo), the S&P 500 fund, holds none of the eight: none is in the index. A [semiconductor fund like SMH](https://portfolio-terminal.com/analyse/smh) holds none either, but puts $1,928 of every $10,000 in Nvidia. If you own these funds, the AI build-out is already a large part of your portfolio, through the company that sells the GPUs, not the ones that rent them out. To see your own number, the [portfolio X-ray](https://portfolio-terminal.com/x-ray) looks through your funds the same way.

![Bar chart of what $10,000 in each fund held of the eight listed neoclouds: ARKK $260.55, IWM $74.27, QQQ $41.47, VGT $27.12, VTI $8.63, VOO and SMH $0, from the issuers' holdings files of August and September 2026](https://portfolio-terminal.com/blog-sources/neocloud-look-through-per-10000-etf.png "Sources: Vanguard, Invesco, VanEck, iShares and ARK Invest holdings files")

Nvidia is also a shareholder. Its 13F filing for June 30, 2026, the list of holdings large investors file with the SEC every quarter, shows 47,213,353 CoreWeave shares, worth $4.70 billion that day and 8.6% of CoreWeave's shares, and 1,190,476 Nebius shares. At the October 12 close of $80.26, its CoreWeave stake was worth $3.79 billion.

## Which neocloud stocks to look at, by what you want to bet on

Each group below is a different bet. The last column is what it cost its holders at the worst point of our window.

| If you think… | Companies that carry that bet | What has to go right | Worst fall, Mar. 2025 → Oct. 2026 |
|---|---|---|---|
| AI labs will keep renting more GPUs than the hyperscalers can supply | CoreWeave (CRWV), Nebius (NBIS) | Contracts delivered on time, financed, renewed | −66.9% and −48.3% |
| Power and buildings are the bottleneck, not chips | IREN (IREN), Applied Digital (APLD), Cipher Digital (CIFR), TeraWulf (WULF), Hut 8 (HUT), Core Scientific (CORZ) | Signed leases turn into revenue; tenants pay | −41.7% to −61.6% |
| Whoever wins, someone buys the hardware | Nvidia (NVDA), Vertiv (VRT), Dell (DELL), Arista Networks (ANET), Super Micro Computer (SMCI) | Spending on AI data centers keeps rising | −20.2% (Nvidia) to −66.2% (Super Micro) |
| The customers will earn back what they spend | Microsoft (MSFT), Meta Platforms (META), Oracle (ORCL) | AI revenue grows into the compute bill | −33.5% (Meta) to −65.0% (Oracle) |
| All of it in one line | Roundhill Neocloud ETF (NCLD) | Same as the first two rows, at 0.65% a year | −6.1% since its August 6, 2026 launch |

The suppliers and customers over the same window, for comparison:

| Company (ticker) | Return, Mar. 28, 2025 → Oct. 12, 2026 | Worst fall from a high |
|---|---:|---:|
| Nvidia (NVDA) | +106.9% | −20.2% |
| Vertiv (VRT) | +222.9% | −40.7% |
| Dell Technologies (DELL) | +539.6% | −32.6% |
| Arista Networks (ANET) | +170.6% | −28.3% |
| Super Micro Computer (SMCI) | +16.7% | −66.2% |
| Microsoft (MSFT) | +44.5% | −34.9% |
| Meta Platforms (META) | +29.4% | −33.5% |
| Oracle (ORCL) | −0.4% | −65.0% |

Oracle is the case to study: it rents GPU capacity to AI labs as well, fell 5.48% on the October 8 OpenAI report, and over the window returned −0.4% with a 65.0% fall. Pages with charts and key figures: [Nvidia](https://portfolio-terminal.com/analyse/nvda), [Microsoft](https://portfolio-terminal.com/analyse/msft), [Meta](https://portfolio-terminal.com/analyse/meta), [Oracle](https://portfolio-terminal.com/analyse/orcl), [Arista](https://portfolio-terminal.com/analyse/anet).

**Size it before you pick it.** A 5% position in a stock that falls 53.5%, the median worst fall of the eight, costs the whole portfolio 2.7%. A 20% position costs it 10.7%. Run the number on your own holdings with the [crash test](https://portfolio-terminal.com/crash-test), and track the fall from the high as it happens with [drawdown monitoring](https://portfolio-terminal.com/drawdown-monitoring). This is not investment advice.

## What could go right, and what could go wrong

**Right.** The order books are real and signed: $104 billion of backlog at CoreWeave, more than $40 billion of customer commitments at Nebius, which expects more than $9 billion of prepayments in 2026. CoreWeave's active power reached 1.5 GW (gigawatts of data-center power) in the second quarter, with 3.7 GW contracted, so capacity already paid for is still to come online.

**Wrong.** A few customers carry each company, and many of them are AI labs that lose money: Anthropic's IPO figures, [as reported by Reuters](https://portfolio-terminal.com/blog/anthropic-ipo-leak-revenue-losses-2026), showed an $8.06 billion operating loss for 2025. New shares dilute: Nebius sold 12.7 million in one quarter. And a GPU bought in 2026 competes with a faster one in 2028, which is why the depreciation period matters. The [week of October 5–9](https://portfolio-terminal.com/blog/stock-market-week-in-review-october-9-2026) showed how one report on OpenAI moves all of it at once.

## How we measured

**Who counts.** US-listed companies whose main business is renting GPU capacity or hosting GPUs for AI customers, with a full trading history from March 28, 2025, CoreWeave's first session. Galaxy Digital (GLXY) hosts GPUs too and is in the Roundhill fund, but most of its reported revenue comes from digital-asset sales, so it is left out. Private neoclouds (Lambda, Crusoe) cannot be measured.

**Prices.** Yahoo Finance daily closes for falls and highs, adjusted closes for returns and the daily moves behind volatility, beta and correlation, from March 28, 2025 to October 12, 2026 (387 sessions). The basket holds the eight in equal parts, rebalanced every day, which is a simplification: a real portfolio drifts toward the winners.

**Company figures.** Quarterly revenue and share counts from each company's SEC filings through the XBRL company facts (IREN's last quarter is its fiscal year less the first nine months; its share count is from April 30, 2026). CoreWeave's debt, interest, customers and capital spending from its 2025 10-K, its June 30, 2026 10-Q and its second-quarter release; Nebius's from its second-quarter shareholder letter, with Yahoo's share count. Nvidia's stakes from its 13F for June 30, 2026.

**Funds.** The issuers' full holdings files, dated in the table.

**What would change it.** A later start date makes the returns much smaller: half of the eight were near their highs on June 18, 2026. Another month of falls or gains moves every number in the first table. The method does not say what the stocks will do next.

## Reproduce it

The script rebuilds the first table, the basket and the Nvidia comparison from Yahoo Finance. We ran it on October 13, 2026.

```python
# Reproduces https://portfolio-terminal.com/blog/neocloud-stocks-what-is-a-neocloud
# pip install yfinance pandas
# The eight US-listed neoclouds from CoreWeave's first close (March 28, 2025) to Oct. 12, 2026:
# return with dividends, worst fall from a high (daily closes), daily volatility and beta to
# Nvidia, and an equal-weight basket of the eight rebalanced daily. Data: Yahoo Finance.
import warnings

import pandas as pd
import yfinance as yf

warnings.filterwarnings("ignore")
NEO = ["CRWV", "NBIS", "IREN", "APLD", "CIFR", "WULF", "HUT", "CORZ"]
REF = ["NVDA", "QQQ"]
START, END = "2025-03-28", "2026-10-13"  # END is exclusive: last session Oct. 12

data = yf.download(NEO + REF, start=START, end=END, auto_adjust=False, progress=False)
close, adj = data["Close"], data["Adj Close"]
assert str(close.index[0].date()) == START and str(close.index[-1].date()) == "2026-10-12"
ret = adj.pct_change().iloc[1:]

def worst_fall(series):
    return (series / series.cummax() - 1).min() * 100

vol = ret.std() * 252 ** 0.5 * 100
rows = []
for t in NEO + REF:
    beta = ret[t].cov(ret["NVDA"]) / ret["NVDA"].var()
    rows.append({
        "ticker": t,
        "return %": round((adj[t].iloc[-1] / adj[t].iloc[0] - 1) * 100, 1),
        "worst fall %": round(worst_fall(close[t]), 1),
        "below high %": round((close[t].iloc[-1] / close[t].max() - 1) * 100, 1),
        "volatility %": round(ret[t].std() * 252 ** 0.5 * 100, 1),
        "beta to NVDA": round(beta, 2),
    })
table = pd.DataFrame(rows).set_index("ticker")
print(table.to_string())

neo = table.loc[NEO]
print(f"\nmedian worst fall of the eight: {neo['worst fall %'].median():.1f}%")
print(f"median volatility of the eight: {vol[NEO].median():.1f}%")
print(f"beat Nvidia: {(neo['return %'] > table.loc['NVDA', 'return %']).sum()} of 8")

basket = (1 + ret[NEO].mean(axis=1)).cumprod() * 1000
print(f"\n$1,000 in the eight, equal weight: ${basket.iloc[-1]:,.0f}")
print(f"basket peak: ${basket.max():,.0f} on {basket.idxmax().date()}")
print(f"basket worst fall: {worst_fall(basket):.1f}%")
nvda = adj["NVDA"].iloc[-1] / adj["NVDA"].iloc[0] * 1000
print(f"$1,000 in Nvidia: ${nvda:,.0f}")
```

```text
        return %  worst fall %  below high %  volatility %  beta to NVDA
ticker                                                                  
CRWV       100.7         -66.9         -56.3         110.6          1.18
NBIS       841.6         -48.3         -26.7         108.6          1.19
IREN       473.3         -61.6         -54.5         100.5          0.91
APLD       306.5         -53.2         -53.2         115.6          0.98
CIFR       460.3         -55.4         -55.4         111.2          1.06
WULF       391.5         -53.9         -53.9         104.3          0.94
HUT        627.3         -41.7         -35.9         100.9          1.12
CORZ       100.8         -48.5         -48.5          75.1          0.90
NVDA       106.9         -20.2          -5.4          40.2          1.00
QQQ         60.2         -12.6          -1.8          22.1          0.42

median worst fall of the eight: -53.5%
median volatility of the eight: 106.5%
beat Nvidia: 6 of 8

$1,000 in the eight, equal weight: $5,989
basket peak: $10,228 on 2026-06-18
basket worst fall: -43.8%
$1,000 in Nvidia: $2,069
```

What to do with it: see how much of the AI build-out your funds already hold with the [portfolio X-ray](https://portfolio-terminal.com/x-ray), and what a 53.5% fall in one line would cost you with the [crash test](https://portfolio-terminal.com/crash-test). The other studies built the same way are on the [research page](https://portfolio-terminal.com/research); for why three funds can be one bet, see [how much your ETFs overlap](https://portfolio-terminal.com/blog/etf-overlap-which-etfs-are-the-same), and for one big buyer behind a stock, [what record buybacks did next](https://portfolio-terminal.com/blog/nvidia-150-billion-buyback-record-buybacks).

Sources: [CoreWeave 10-Q, June 30, 2026](https://www.sec.gov/Archives/edgar/data/1769628/000176962826000366/crwv-20260630.htm) · [CoreWeave 10-K, 2025](https://www.sec.gov/Archives/edgar/data/1769628/000176962826000104/crwv-20251231.htm) · [CoreWeave Q2 2026 release](https://www.sec.gov/Archives/edgar/data/1769628/000176962826000362/coreweave2q26earningspress.htm) · [Nebius Q2 2026 shareholder letter](https://assets.nebius.com/assets/4462517b-ce83-41f2-96ed-f2ac1bc06a05/SHLQ226%20(1).pdf-0) · [Nvidia 13F, June 30, 2026](https://www.sec.gov/Archives/edgar/data/1045810/000104581026000065/information_table.xml) · [SEC company facts](https://www.sec.gov/edgar/sec-api-documentation) · [Roundhill Neocloud ETF](https://www.roundhillinvestments.com/etf/ncld/) · Yahoo Finance daily closes.

## Questions and answers

**What is a neocloud?**

A neocloud is a cloud company that rents GPU computing, mostly on Nvidia chips, to AI labs and large companies, instead of selling hundreds of services like Amazon Web Services or Microsoft Azure. It pays for the chips with debt, share sales and customer prepayments. The largest listed one by revenue, CoreWeave (CRWV), had revenue of $2,575 million in the second quarter of 2026, and Microsoft was 67% of its 2025 revenue.

**Which companies are neocloud stocks?**

Eight US-listed companies have made renting or hosting GPU capacity for AI their main business: CoreWeave (CRWV) and Nebius Group (NBIS), the two GPU clouds; IREN (IREN); Applied Digital (APLD); and the bitcoin miners Cipher Digital (CIFR), TeraWulf (WULF), Hut 8 (HUT) and Core Scientific (CORZ). Lambda and Crusoe are private. The Roundhill Neocloud ETF (NCLD) holds several of them in one fund.

**What is the difference between a neocloud and a hyperscaler?**

A hyperscaler such as Amazon Web Services, Microsoft Azure or Google Cloud sells storage, databases, software and AI to many customers and pays for its data centers out of its other businesses. A neocloud sells GPU computing to a few large customers under multi-year contracts and pays with borrowed money: CoreWeave owed $35.1 billion of debt on June 30, 2026, 3.4 times a year of revenue at its second-quarter pace.

**What has CoreWeave stock done since its IPO?**

CoreWeave (CRWV) closed at $40.00 on its first trading day, March 28, 2025, rose to a record close of $183.58 on June 20, 2025, fell 66.9% to $60.82 on July 29, 2026, and closed at $80.26 on October 12, 2026, a 100.7% gain from the first close. Over the same dates Nvidia returned 106.9%. This is not investment advice.

**Is there a neocloud ETF?**

Yes. The Roundhill Neocloud ETF (NCLD) started trading on August 6, 2026, charges 0.65% a year and is actively managed. Its five largest holdings on September 30, 2026 were Nebius, CoreWeave, IREN, Hut 8 and Galaxy Digital, and it reaches part of its exposure through total return swaps, contracts that pay a stock’s return without holding it. It closed its first day at $22.38 and was at $21.01 on October 12, 2026, 6.1% lower with distributions counted.

**Do I already own neocloud stocks through my index funds?**

A little. From the issuers’ holdings files, $10,000 in the Invesco QQQ fund held $41.47 of the eight listed neoclouds (CoreWeave and Nebius) on September 24, 2026, and $10,000 in the Vanguard Total Stock Market fund (VTI) held $8.63 on August 31, 2026. The Vanguard S&P 500 fund (VOO) held none. The same $10,000 in QQQ held $819 of Nvidia, which sells them the GPUs.

**Why are neocloud stocks so volatile?**

Because each one depends on a few AI customers and a lot of debt. From March 28, 2025 to October 12, 2026, the eight listed neoclouds had a median volatility of 106.5% a year, against 40.2% for Nvidia, and they move with each other more than with Nvidia. On October 8, 2026, after a report on OpenAI’s revenue, they fell 6.21% on average while Nvidia fell 2.94%.