AI infrastructure stocks tumble as CoreWeave bonds yield near 15%

· Politics · United States

Shares of AI cloud provider CoreWeave sank 15% and yields on its bonds blew out toward 15% on concern about an AI borrowing binge, while traders piled into 'bubble puts' on the stock. Dell plunged 11%, leading a data center sell-off, after Barclays downgraded Dell, HPE and NetApp on fears that enterprise AI adoption is lagging. The S&P 500 ended its longest streak of calm since 2020 as the AI trade sank. BlackRock's Larry Fink warned that a data center moratorium could trigger a recession. The sell-off came despite strong results from chip majors, leaving TSMC's upcoming earnings with a high bar to calm jitters.

Why it matters：The AI trade has driven global equities, so cracks in its financing could spill into credit markets and the wider economy.

Key points

  • CoreWeave shares fell 15% and its bond yields neared 15%.
  • Dell dropped 11% after Barclays downgrades.
  • The S&P 500 ended its longest calm streak since 2020.

Sources (original reporting)

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