CoreWeave shares plunge 15% as bond yields near 15% on AI debt fears

CoreWeave shares plunged 16% and its bond yields neared 15% on Wednesday as investor fears grew over heavy corporate borrowing for artificial intelligence infrastructure, reflecting a sharp shift in market sentiment toward AI-related debt. The yield to maturity on CoreWeave's 9.625% bond due in 2032 reached 14.8%, while its 9.75% bond due in 2031 hit around 14.9%. Wells Fargo's Luis Alvarado said the "era of easy money" is ending, with investors demanding more risk compensation. Tech investor Chamath Palihapitiya highlighted the soaring yields on X, prompting Elon Musk to respond "yikes." Other tech firms faced similar pressure, with Oracle shares falling nearly 7% and Dell dropping 10%, while the Nasdaq Composite lost 1.4%. Neocloud stock Nebius declined 9%. Hyperscalers are projected to spend $800 billion this year on AI infrastructure, exceeding $1 trillion annually by 2027, according to JPMorgan.