Nvidia-Backed Neocloud Firmus Slashes IPO Price 25% as AI Bubble Concerns Mount
NVDA sits 43% above its 52-week low of $164.27.
Summary
Firmus Technologies, a data centre developer backed by Nvidia and Blackstone, cut its IPO price by 25% to A$8.25 per share, reducing the raise to A$5.9 billion from A$7.9 billion and equity value to A$33 billion from A$44 billion. The company is scrambling to keep the deal alive after investors balked at its aggressive valuation, which relied on a novel 'EV+1/EBIT+2' metric that critics say obscures execution risk. Firmus has built only 42 MW of its 1 GW pipeline and is pivoting to Malaysia and Indonesia to serve hyperscalers like OpenAI and Meta. The IPO is expected to start trading October 23. This is a direct read on AI infrastructure demand and Nvidia's ecosystem exposure, though Nvidia's own financials are not directly affected.
At the time of this announcement, NVDA was trading at $234.99 on NASDAQ in the Technology sector, with a market capitalization of approximately $5.7T. The 52-week trading range was $164.27 to $243.37. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.