Parkev Tatevosian, CFA on $IREN (Nov 8, 2026)

Shares of CoreWeave, Nebius, Iron, and Applied Digital fell by 12%, 14%, 16%, and 17 % respectively, as the results of the US midterm elections heightened investor concerns about a potential slowdown in the approval and construction of new data centers , and in the artificial intelligence sector as a whole.

And now, these stocks weren't just suffering today. They have collectively declined by approximately 50% each over the past month. So, investors are asking me: Is this a buying opportunity when the price is low, or will this event bankrupt these companies given their already large debt levels?

Therefore, I wanted to evaluate these companies, share my views on them, and find out whether I believe they are buying opportunities on a dip or stocks that investors should avoid.

You can see the price movement today for these four companies that are closely related to the artificial intelligence sector. CoreWeave, Nebius, Iron, and Applied Digital all dropped by double digits today.

In fact, all four of these companies have declined by at least 44% over the past month, with CoreWeave down 51% overall. What started the sale process in these companies, and what is worrying about them, is the large debt balance.

These companies spend a lot of money on capital expenditures and need to borrow money to finance those investments .

In third place comes Iron with more than $7.8 billion, and Applied Digital with a much lower debt of $6.46 billion.

While I have been covering these companies for the past year or more, I have been telling investors that these are among the most dangerous stocks to buy, and should only be considered by investors with a very high risk tolerance.

And with the company "Iron", I see that this is the case. Therefore, I calculated the fair value of this company at $46. The current market price after today's drop is 18%. So, I see tremendous upside potential in this stock, even though it is one of the riskiest investments and its value could reach zero , right?

This company may go bankrupt. This is not a 0% probability. However, the potential return is also huge if this sector continues to expand and demand continues.

Again, the concern here is about debt. If you look at Iron's long-term debt, for example, there is $7.7 billion in long-term debt, while the market capitalization is $7.3 billion.

Therefore , the debt exceeds the value of the company.

Overall, all of these stocks were rated as a buy opportunity on a dip. Moreover, I have raised all levels of my confidence in these companies.

I did the same thing with Iren, with the Nebius Group, and with Applied Digital. I reaffirmed my buy ratings for companies and raised my conviction level in all of them from low to medium in light of recent sell-offs.