Iris Energy shares dropped nearly 9.7% in morning trading on Thursday, reaching a new 52-week low as selling pressure continued across the neocloud sector. The stock fell below a key support level that was already breached on Wednesday.

The decline follows a Gartner research report published Wednesday that forecasts more than 80% of neocloud providers will cease operating as independent businesses by 2030. The report states that companies renting GPU capacity for AI workloads will see revenue fall short of the capital costs needed to build AI data centers.

CoreWeave's high-yield bond yields surged toward 15%, creating uncertainty in credit markets about funding models across the neocloud sector. Elon Musk posted a one-word reaction to the bond yield increase, while venture capitalist Chamath Palihapitiya issued a warning about an AI private credit bubble.

Iris Energy announced on Wednesday plans for a 900-megawatt data center campus in Wagga Wagga, Australia. The project sits outside the company's existing power portfolio and requires additional grid approvals.

The stock also lost gains from Monday, when shares rose on news of a cloud deal with Anthropic.