CoreWeave stock, bonds slide as rate fears hit AI bets
Tech in Asia·2026-10-17 11:00
CoreWeave, a US-based cloud computing company backed by Nvidia, was headed for steep weekly losses in its shares and 2031 bond as investors questioned whether it could sustain its US$50 billion debt load if borrowing costs rise.
The selloff also hit AI infrastructure peers including Nebius Group, a Netherlands-based AI and cloud infrastructure company, as well as data center operators Applied Digital and IREN.
The cost of insuring CoreWeave’s debt also reached record highs, according to S&P Global Market Intelligence.
Evercore analysts kept their outperform rating on CoreWeave, rejecting the view that higher secondary-market bond yields showed the company’s business model had stopped working.
Regulatory filings also showed that CoreWeave CEO Michael Intrator and related entities had sold nearly US$1 billion of stock since the company’s March 2025 IPO, mostly under prearranged trading plans.
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