CoreWeave shares tumble as bond yields near 15% on concern about AI borrowing binge

Key points

• CoreWeave shares fell 15.5% on Wednesday as yields on its bonds rose to about 14.8% and 14.9%, reflecting investor concern about heavy AI-related borrowing.
• CEO Mike Intrator said in a memo that the market sometimes misunderstands new technology companies and that CoreWeave's backlog more than supports its debt obligations.
• The debt worry also hit other tech names, with Oracle closing down nearly 9%, Nebius dropping 10% and Dell falling about 11% as the Nasdaq Composite closed down 1.9%.

CoreWeave's stock and bonds came under pressure on Wednesday as investors grew worried that technology companies are taking on too much debt to fund the artificial intelligence build-out. The company's shares dropped 15.5%, while yields on its debt climbed.

The yield to maturity on CoreWeave's 9.625% bond due in 2032 stood at 14.8%, and the yield on its 9.75% bond due in 2031 was around 14.9%. Bond yields move inversely to prices.

CEO dismisses market reaction

CEO Mike Intrator dismissed the market moves in a memo obtained by CNBC. He wrote that building a new type of technology company brings periods when the market misunderstands and acts irrationally, and said the company's backlog more than supports all of its debt obligations.

Wells Fargo Investment Institute's Luis Alvarado, co-head of global fixed income strategy, said investor sentiment has shifted as investors demand more risk compensation. He said the era of easy money from the first nine months of the year is starting to disappear, and that the marginal dollar will now be examined more closely for the concessions an issuer gives back.

When you are building a new type of technology company there will be periods of time when the market misunderstands and acts irrationally

— Mike Intrator

Wider tech fallout

CoreWeave is not alone in feeling the fallout. Oracle closed down nearly 9% on Wednesday and its bond yields were higher, with the yield to maturity on its 6.25% bond due in Nov. 2032 at 7.24%. Nebius dropped 10% and Dell fell roughly 11%, while the Nasdaq Composite closed down 1.9%.

Companies racing to build AI infrastructure have turned to the credit market, increasing the supply of new bonds. Alphabet, Amazon, Meta Platforms and Oracle together issued more than $228 billion in bonds as of Oct. 13, according to LSEG, more than double the amount seen in all of 2025, and all but Oracle hold investment-grade S&P ratings.