AI-Linked Stocks Bloom Energy, CoreWeave Rebound Sharply as Forced Selling Subsides

Shares of AI-related firms Bloom Energy, CoreWeave, and Nebius surged Tuesday in a sharp rebound, as intense selling pressure from a large, leveraged technology fund appeared to subside following a series of margin calls.

Forced Liquidation Eases

The rally marks a significant reversal for the stocks, which had been under pressure from what market participants describe as forced selling. According to a report from Investing.com, the sell-off was linked to margin calls issued by banks including Goldman Sachs and JPMorgan to funds with highly concentrated AI positions, such as Situational Awareness LP.

This forced liquidation created an artificial oversupply of shares, driving prices down. With that selling pressure now potentially exhausted, the stocks staged a dramatic recovery in intraday trading:

• Bloom Energy (BE): Up approximately 26.6% to $207.30
• Nebius Group (NBIS): Up approximately 29.2% to $191.49
• CoreWeave (CRWV): Up approximately 24.2% to $75.51

Market Gauges Fundamental Outlook

Ad

The three companies were reportedly core long positions for Situational Awareness LP, according to its Q1 2026 13F filing. The key question for investors is whether the recent downturn was a result of these technical, mechanical selling dynamics or a genuine deterioration in the sector's fundamentals.

In a July 24 letter cited by Investing.com, the fund itself called the tech rout a "buying opportunity." However, that commentary should be viewed in the context that the firm was also reportedly seeking emergency capital.

Bull and Bear Cases in Focus

The rebound highlights the competing narratives surrounding the AI infrastructure trade. The bull case rests on the unchanged long-term demand for AI-related power and computing. A $1.7 billion project for Bloom Energy to deploy fuel cells for Nebius's AI cloud underscores the tangible business connections underpinning this thesis.

Conversely, bears point to significant risks. These include high valuations, with InvestingPro's model for Bloom Energy implying -53% downside from recent levels. Other headwinds include rising competition for CoreWeave from players like Meta and over $140 million in insider share sales at Nebius in the 90 days before the sell-off.