Nvidia Stock Is a Safer Bet Than CoreWeave Bonds

Lenders are demanding nearly 15% yield on CoreWeave's bonds, up from 9.625% in June, signaling rising financial distress for the AI cloud company, which also saw its stock drop 15% on Wednesday. CoreWeave's revenue doubled to $2.6 billion in Q2, but it lost $49 million on operations and paid $640 million in interest, with total debt near $35.6 billion. Nvidia, a shareholder and chip supplier, fell 3% to about $221. Nvidia's direct exposure is limited: its CoreWeave stake is worth about $3.1 billion, and a $6.3 billion capacity backstop exists, but Nvidia's $63.7 billion quarterly operating income and $178 billion revenue make such losses absorbable.