Neocloud fund falls 11.0% while a data-center fund slips 2.3%

By 10:24 a.m. ET Friday, Nov. 13, Roundhill Neocloud ETF NCLD was down 11.0%. Roundhill describes a neocloud as a company that builds the data centers that power artificial intelligence and rents them out on multi-year contracts, paid whether the customer uses the capacity or not. Global X Data Center & Digital Infrastructure ETF DTCR was down 2.3%.

Both funds are sold as a way to own that buildout. They do not own the same companies, and Thursday's news was not one event.

A revenue delay, and a resignation

Nebius rents out that capacity. In a shareholder letter filed Thursday with the Securities and Exchange Commission, the company said a portion of this year's revenue is moving into the first part of next year, and that it now expects 2026 revenue at the low end of a $3.0 billion to $3.4 billion range.

"Where we rely on third parties, there have been delays. This includes in New Jersey, where we are transitioning the power source to Bloom Energy's sustainable fuel cells."

The letter said the first fuel cells are already installed and the company is scaling them. It said the site operator began retiring temporary generation ahead of the switch to permanent power, and that the decision reset the schedule. Nebius expects to deliver more than half the capacity contracted with Microsoft by the end of the year, with the rest now scheduled for the second quarter of 2027. It also raised this year's capital spending to about $27 billion, above a prior range of $20 billion to $25 billion.

Nebius closed down 16.8% on Thursday. CNBC reported that the shares sank as the company issued disappointing full-year revenue guidance.

The same day, Nvidia said Jensen Huang had resigned as president, chief executive and a board member, effective immediately. Chief financial officer Colette Kress was named interim chief executive. The announcement gave no reason. CNBC's live coverage said shares of neoclouds, which rely on Nvidia's chips, tumbled following the resignation.

CoreWeave rose 24.7% on Wednesday after it raised its own revenue forecast and said it would deliver new capacity sooner than planned. It closed down 6.9% on Thursday.

By 10:24 a.m. Friday, CoreWeave was down another 11.7% and Nebius was down another 14.4%. Nvidia was down 3.7%.

What the funds actually own

NCLD is built to own that rental business. It began trading on Aug. 6, 2026, charges 0.65%, and a fact sheet dated Sept. 30, 2026, put its assets at $95.7 million. Roundhill counts a company as a neocloud if at least half its revenue, contracted backlog or committed spending is tied to that rental business, including graphics-chip rental and the data centers, power and networking it requires.

As of Nov. 5, Roundhill's holdings page put Nebius at 33.24% and CoreWeave at 25.10%, together 58.34% of the fund. Roundhill says the weight combines the shares with positions held through total return swaps. Nebius was 10.66% in shares and 22.58 percentage points in two swap contracts. CoreWeave was 8.05% in shares and 17.05 percentage points in swaps.

A total return swap pays the stock's gain or loss. A holder rises and falls with Nebius and CoreWeave whether the fund owns the shares or a contract with a bank. The fact sheet says a swap can be harder to exit than a stock, and the fund can lose if the bank on the other side does not pay. The bet is still the two stocks. Both were down double digits Friday morning, and the fund was down 11.0%.

From its first close on Aug. 6 through Thursday's close, the share price fell 35%, not counting dividends.

Defiance AI & Power Infrastructure ETF AIPO owns the power infrastructure, not the rental companies. It launched on July 24, 2025, charges 0.69%, and reported $784 million as of Thursday. It tracks the MarketVector US Listed AI & Power Infrastructure Index, of U.S.-listed companies that derive at least half their revenue from artificial intelligence hardware, data centers, power infrastructure or related businesses. The index weights companies by free-float market capitalization and rebalances each quarter.

As of Friday, the fund's holdings listed Quanta Services at 9.4%, Eaton at 8.4%, GE Vernova at 8.3% and Vertiv at 6.6%. Bloom Energy, whose fuel cells Nebius named as the new power source, was 4.6%. In the full holdings file the same day, Nebius was 0.31%.

By 10:24 a.m., AIPO was down 3.6% and Bloom Energy was down 8.2%. Those two stakes are a different portfolio from NCLD.

DTCR tracks the Solactive Data Center REITs & Digital Infrastructure Index, which Global X's fact sheet describes as designed for companies in data centers, cellular towers and digital-infrastructure hardware. The fund launched on Oct. 27, 2020, charges 0.50%, and Global X reported $2.04 billion as of Oct. 8.

On Global X's Oct. 8 holdings list, Digital Realty, Equinix, American Tower and Crown Castle were the four largest, together 45% of the fund. The fund was down 2.3% Friday morning.

From NCLD's first close on Aug. 6 through Thursday, AIPO fell 19% in share price and DTCR fell 8.3%, not counting dividends.

The comparison starts that day because that is when the neocloud fund began. Over that stretch, as on Friday morning, the concentrated fund fell the most and the data-center fund fell the least. This year, through Thursday, DTCR is up 22% in share price.

VanEck Semiconductor ETF SMH was down 4.6% by 10:24 a.m., and State Street SPDR S&P 500 ETF SPY was down 1.1%. The chip fund fell more than the data-center fund and less than the neocloud fund.

Thursday brought a revenue delay at Nebius and the resignation of Nvidia's chief executive. CoreWeave, which had just raised its outlook, fell with Nebius. The funds fell by different amounts because they own different companies.