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Nebius (NASDAQ: NBIS) And CoreWeave (NASDAQ: CRWV) Stock Plunge As Credit-Swap Costs Threaten AI Infrastructure Financing
['Ewan Scott']
Foreign Policy Journal
Nebius Group (NASDAQ: NBIS) shares fell 10% in midday Wednesday trading, changing hands at $152.58, making it the steepest decliner among AI cloud names.
CoreWeave (NASDAQ: CRWV) followed close behind, dropping 9% to $61.53 as both companies led a sharp re-pricing of highly leveraged AI infrastructure borrowers.
The catalyst is the credit market rather than earnings, with credit-default-swap costs on AI infrastructure borrowers surging as investors question whether the current capital expenditure boom can be financed at reasonable rates.
Oracle is the largest non-financial borrower in the Bloomberg U.S. high-grade index, and its 2054 note yields have climbed to 7.8%, adding to a broader picture of tightening conditions for large-scale AI infrastructure financing.
NVIDIA (NASDAQ: NVDA) stock slipped 3% to $191.59, with NVIDIA’s CDS also touching a new high, adding another layer of concern to sentiment across the AI infrastructure space.