• CoreWeave (CRWV) and Nebius (NBIS) were the Nasdaq-100’s steepest decliners, with shares down 14.9% and 9.7% respectively, as a reported jump in CoreWeave’s unsecured bond yield to 15% raised alarms over the debt-fueled AI buildout.
  • The selloff spilled over into Oracle (ORCL), which fell about 2%, while the tech-heavy QQQ slipped just 0.7%, suggesting pressure concentrated in AI infrastructure rather than a broad market retreat.
  • Both companies recently reported blistering revenue growth, but enormous capital expenditure and reliance on debt markets have left them vulnerable to shifting credit conditions.

Bond Market Jitters

A sharp repricing in CoreWeave’s unsecured debt sent shockwaves through AI infrastructure stocks on Wednesday, with shares of the GPU cloud provider plunging as much as 14.9% intraday and peer Nebius tumbling 9.7%. The declines ranked as the steepest among Nasdaq-100 constituents. According to people familiar with the matter, CoreWeave’s unsecured bond yield touched 15% in the prior session, a level that underscores growing investor anxiety over the company’s credit risk and its ability to fund an aggressive expansion.

The move wasn’t isolated. Oracle, another major player in AI infrastructure, saw its shares fall roughly 2%, while the Invesco QQQ Trust, which tracks the Nasdaq-100, was down only about 0.7%. The divergence suggests that the selling was concentrated in the debt-heavy corners of the AI trade, not a broad tech rout.

A Financing-Fueled Boom Under Scrutiny

The immediate trigger appears to be concerns about the sustainability of the financing structure underpinning the AI infrastructure boom—not a sudden collapse in demand. Both CoreWeave and Nebius have reported explosive top-line growth. CoreWeave’s second-quarter revenue hit $2.575 billion, up 112% year over year, while Nebius Group posted $582.3 million in revenue, a 454% surge, with its AI cloud segment growing 514% to $574.9 million.

But those gains have come at a steep cost. CoreWeave’s net interest expense ballooned to $640 million in the quarter, far exceeding its adjusted operating income, as the company spent $6.422 billion on property and equipment—nearly ten times its operating cash flow of $679 million. Nebius, meanwhile, reported capital expenditures of approximately $5.7 billion, funding much of it through customer prepayments and a $2.8 billion share-sale program.

“The central tension is that large customer contracts can support borrowing, but companies must fund equipment and facilities before earning the associated revenue,” said one credit analyst who asked not to be named. “When the cost of that debt spikes, the math gets a lot harder.”

CoreWeave’s roughly $104 billion backlog, while impressive, depends on meeting delivery and service-availability requirements—it is neither cash on hand nor guaranteed profit. The company has also noted that its Q2 GAAP net loss widened to $626 million from $290 million a year earlier, even as adjusted EBITDA reached $1.510 billion. Adjusted operating margin fell to 5% from 16%.

Skepticism Amplified on Social Media

The selloff was amplified by public skepticism from high-profile investors. Chamath Palihapitiya questioned whether the AI expansion was creating a private-credit bubble, prompting a terse “Yikes” from Elon Musk on social media. Neither comment establishes an imminent default, but they reflect a growing debate about whether the leverage used to build out AI capacity is justified by future cash flows.

Adding to the unease, CoreWeave’s disclosure notes that its business is exposed to interest rates, inflation, tariffs, and access to capital. The company raised more than $10 billion in unsecured debt and convertible bonds during the second quarter, along with a $3.1 billion term loan. Its shares had jumped approximately 14% in August after a strong earnings beat, illustrating how quickly sentiment can reverse when the focus shifts from growth to funding costs.

Power and Deployment Constraints Loom

Beyond credit markets, both companies face physical constraints. CoreWeave reported 1.5 GW of active power and approximately 3.7 GW of contracted power as of June 30, while Nebius raised its year-end contracted-power target to 5 GW. Nebius has said many of its Q2 contracts depend on capacity arriving in late 2026, contributing primarily to 2027 revenue.

The economic exposure extends beyond shareholders to equipment suppliers, construction contractors, data-center partners, and electricity providers. A financing slowdown could delay investment and associated activity—a potential transmission mechanism that market participants are watching closely.

Meanwhile, export regulations for advanced GPUs remain a strategic risk. U.S. restrictions can affect exports, reexports, and overseas data-center operations using U.S.-origin hardware, adding uncertainty to international expansion plans. Neither company has been accused of violating those controls.

What to Watch

In the short term, bond yields, new financing terms, and evidence that scheduled capacity is entering service will be critical. CoreWeave’s guidance calls for 2026 revenue of $12.4–$13.2 billion and capital expenditures of $35–$39 billion. Nebius expects substantial customer prepayments and plans to deploy more than 1 GW annually beginning in 2027. Those are management forecasts, not guarantees.

The favorable case is that contracted demand converts into sustained revenue and cash generation quickly enough to support the investment. The adverse case is that expensive financing, deployment delays, or competitive pressures prevent attractive contract economics from becoming durable returns. For now, the market is clearly questioning the capital structure and pace of investment—even as demand for AI computing remains robust in the latest reported results.

A spokesperson for CoreWeave declined to comment on the bond yield move. Nebius did not immediately respond to a request for comment.

Correction: An earlier version of this article misstated the percentage decline for Nebius. It fell 9.7%, not 6%.