Nebius and CoreWeave Plunge as Rising Credit-Swap Costs Hit AI Cloud Stocks
Shares of AI cloud infrastructure companies Nebius Group (NBIS) and CoreWeave (CRWV) fell sharply on Wednesday, dropping 10% and 9% respectively, as rising credit-default-swap (CDS) costs triggered a repricing of leveraged AI borrowers. CoreWeave's CDS topped 855 basis points, implying a 50% five-year default probability, while its Q1 2026 report showed interest expense doubling to $536 million and negative free cash flow of $4.71 billion. Oracle (ORCL) also fell 2% as its CDS rose above 215 basis points. The selloff was concentrated in highly leveraged AI infrastructure names, as the broader First Trust Cloud Computing ETF (SKYY) remained slightly positive. NVIDIA (NVDA) dropped 3% with its CDS also hitting new highs. Apollo economist Torsten Slok warned that rising yields could force the AI capex cycle to 'self-throttle.' The article also notes significant insider selling by CoreWeave co-founders and an NVIDIA director, though these were executed under pre-arranged 10b5-1 plans.
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