AI Cloud Infrastructure Stocks Plunge: Nebius Down 10%, CoreWeave Down 9% as CDS Costs Surge

David Moadel Wed, July 29, 2026 at 9:43 AM PDT | 3 min read

• CRWV: -7.13%
• SKYY: +1.05%
• NBIS: -8.27%
• ORCL-PD: -1.83%
• NVDA: -2.54%

Quick Read

• CoreWeave's credit-default swaps (CDS) now imply a 50% five-year default probability, pushing CRWV down 36% and NBIS down 43% over the past month.
• The SKYY cloud ETF held green as the selloff targeted leveraged AI infrastructure names, while NVDA dropped 3% with its CDS also hitting new highs.
• Act now: The analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

Nebius Group (NASDAQ: NBIS) stock is down 10% in midday Wednesday trading, changing hands at $152.58. The AI cloud pure-play is the day's biggest decliner in the group.

CoreWeave (NASDAQ: CRWV) shares are close behind, off 9% to $61.53. Both names have led a sharp re-pricing of highly levered AI infrastructure borrowers, with NBIS stock now down 43% over the past month and CRWV stock down 36% over the same stretch.

Credit-Swap Costs Spark AI Capex Repricing

The trigger is the credit market, not earnings. Credit-default-swap (CDS) costs on AI-infrastructure borrowers have surged as investors question whether the current capex boom can be financed at reasonable rates.

• CoreWeave's CDS topped roughly 855 basis points Tuesday, implying a 50% five-year default probability on a widely used pricing model.
• The company is junk-rated with negative free cash flow since 2022.
• CoreWeave's Q1 2026 report showed interest expense doubling to $536 million and free cash flow of negative $4.71 billion.

Oracle (NYSE: ORCL) is caught in the same downtrend. Oracle stock is down 2% to $117.29, with its CDS above 215 basis points, up from about 145 at the end of last year. Oracle is the largest non-financial borrower in the Bloomberg U.S. high-grade index, and its 2054 note yields have climbed to 7.8%.

Apollo economist Torsten Slok warned that rising all-in yields could force the AI capex cycle to "self-throttle." The 10-year Treasury yield, at 4.65%, sits in the 98th percentile of its 12-month range, reinforcing the tighter-financing narrative.

Act now: The analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

Cloud ETF Green as Pain Stays Concentrated

The First Trust Cloud Computing ETF (NASDAQ: SKYY) is the tell. The SKYY ETF is up 0.59% to $138.71, even as its 3% CoreWeave weighting and 3.8% Oracle weighting weigh the fund down. Broad cloud software is holding up, so this looks like a targeted re-rating of leveraged buildout names rather than a cloud-wide unwind.

NVIDIA (NASDAQ: NVDA) stock is off 3% to $191.59, with NVIDIA's CDS also touching a new high per the same reports.

Insider Selling

A secondary narrative on the retail side involves insider selling:

• CoreWeave co-founder Brian Venturo sold about $734 million in Q2 2026.
• CEO Michael Intrator sold about $447 million.
• An NVIDIA director disposed of roughly $407 million.

These sales were executed under pre-arranged 10b5-1 plans, are consistent with routine wealth management, and the executives retain substantial stakes.

What to Watch

If CDS spreads on Oracle, CoreWeave, and Nebius stay wide into the close, the refinancing math gets harder and equity multiples could compress further.

Investors can watch for whether the SKYY ETF continues to hold green as a signal that the selloff remains concentrated in leveraged AI infrastructure names.