The Bond Market Is Sending a Dire Warning to Wall Street About the AI Infrastructure Build-Out, but Is Anyone Paying Attention?

Bond markets are flashing warning signs about the massive debt-fueled AI infrastructure build-out, with long-duration corporate bond prices plunging for major AI companies like Nvidia, SpaceX, Oracle, and CoreWeave. Credit default swap spreads have hit record highs, and market-implied default risks have surged, suggesting investors are increasingly skeptical that AI revenues will justify the enormous capital spending. The article warns that the puzzle pieces are in place for an AI bubble-bursting event similar to past technological booms.