Investors are weighing the financing behind AI infrastructure after CoreWeave’s bond yield briefly topped 16% last week, as major technology earnings approach and Britain’s budget remains on the calendar.
CoreWeave shares fell more than 25% over the five trading days through Oct. 16, Reuters reported. On Monday, the shares ended down 0.4% while the Nasdaq Composite gained about 1%. The yield on the company’s October 2031 dollar bond briefly topped 16% on Thursday, Reuters said. That was a secondary-market yield, not the interest rate on CoreWeave’s existing debt.
Reuters linked the debt pressure to worries about rising rates and said short sellers gained as CoreWeave shares fell. In a separate Monday report, Reuters said semiconductor stocks had declined for eight sessions, the longest such run since October 2008. The Independent reported that investors were questioning whether spending on data centers, chips and supply chains would generate lasting profits. It also connected inflation concerns with expectations for higher interest rates, which can make cash returns more attractive than shares.
CoreWeave rents computing capacity to AI customers. Its latest quarterly filing listed net carrying amounts as of June 30 of $31.405 billion in recourse debt and $3.663 billion in nonrecourse debt, or $31.4 billion and $3.7 billion rounded. The borrowing figures put the cost of financing AI infrastructure in focus.
Netflix plans to publish third-quarter results Tuesday, Oct. 20, at 4:01 p.m. ET (20:01 UTC), according to its investor notice. Tesla scheduled its third-quarter results for after the U.S. market close Wednesday, Oct. 21, according to the company.
In Britain, The Independent reported speculation about a higher surcharge on bank profits ahead of the budget. Chancellor John Healey is scheduled to present the U.K. budget on Oct. 28, HM Treasury said.
