CoreWeave's bond yields spike to 15%, triggering stock plunge and Musk's 'yikes'

CoreWeave's bond yields surged to nearly 15% on Wednesday, triggering a 17% stock plunge and a "Yikes" response from Elon Musk, signaling growing investor fear about the AI infrastructure company's debt. The yield spike on its 2032 bonds, issued in June at 9.625%, pushed prices into distressed territory and spiked credit default swaps. CoreWeave has over $50 billion in debt outstanding, having raised more than $30 billion this year. Analysts warn of a potential compute glut and customer contract non-renewals that could crush profitability. Peers Nebius Group and IREN Limited fell 11% and 12%, respectively, while Nvidia-backed Firmus canceled its Australian IPO.