Largest company by market cap on August 31Nvidia’s credit risk has spiked, with its credit default swap (CDS) spreads approaching record levels. This increase in CDS spreads suggests that investors perceive a growing risk in insuring Nvidia’s debt, influenced by the company’s substantial AI-financing commitments. Despite these concerns, Nvidia remains profitable and is not classified as a distressed borrower. AdvertisementKey TakeawaysNvidia’s CDS spreads have surged, reflecting increased perceived credit risk. Despite the credit risk, Nvidia is still seen as a profitable company rather than distressed.