The Bond Market Is Sending a Warning to Nvidia Shareholders

Rising bond yields on neocloud companies CoreWeave and Nebius signal increasing default risk, threatening a key growth driver for Nvidia. CoreWeave's bonds are yielding 15-16%, well above their original coupon rates, indicating market doubts about their ability to generate returns exceeding their cost of capital. While Nvidia has invested $2 billion in each company and backstopped CoreWeave's capacity through 2032, any failure could create significant financial pressure on Nvidia and complicate its $500 billion AI financing plans.