Key facts
- CoreWeave's 2032 bond yield surged to almost 15% on Wednesday.
- The company's stock fell as much as 17% to $64.41.
- CoreWeave has borrowed more than $30 billion this year.
- More than $50 billion of debt was outstanding as of the end of June.
CoreWeave, a company that leases high-end GPU compute for AI development, is facing increased scrutiny from the bond market. On Wednesday, the yield on its 2032 bonds surged to nearly 15%, indicating rising investor concerns about the company's debt position. This surge followed a significant drop in its stock price, which fell as much as 17% to $64.41, and a spike in its credit default swaps. CoreWeave has been a major beneficiary of the AI infrastructure build-out, but the market is debating the sustainability of this growth amid potential oversupply. Analyst Gil Luria of D.A. Davidson has raised concerns that CoreWeave could face a significant stock decline if the AI spending boom subsides and customers do not renew contracts due to industry overbuilding. Other companies in the AI infrastructure space also saw their stocks decline on Wednesday, with Nebius Group down 11% and IREN Limited down 12%. Last week, Nvidia-backed Firmus, a data center operator, withdrew its planned IPO in Australia amid increased investor caution.