CoreWeave shares fall 16% as bond yields near 15% on AI debt worries
Overview
CoreWeave shares fell 16% on Wednesday as yields on its 2031 and 2032 bonds rose to about 14.8% to 14.9%, CNBC reports.
Oracle and Nebius also declined as investors grew concerned about heavy AI borrowing. CNBC reports that investors are demanding more compensation for the risk of AI spending.
JPMorgan estimates that hyperscalers will spend $800 billion this year and more than $1 trillion annually by 2027, according to the same report.
Written by AI from the articles below · updated Oct 14, 12:38 PM ET
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- CNBC · TechnologyNewsCoreWeave shares fall 16% as its bond yields near 15% on AI debt worries
AICoreWeave shares fell 16% on Wednesday as yields on its 2031 and 2032 bonds rose to about 14.8% to 14.9%, according to CNBC. Investors are demanding more compensation for AI risk, with Oracle and Nebius also declining as concern about heavy AI borrowing spread. JPMorgan estimates hyperscalers will spend $800 billion this year, exceeding $1 trillion annually by 2027.
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