CoreWeave drops 15.5% as its junk-bond yields climb near 15%
Why it matters: The sell-off signals investors want far more compensation to fund AI data-center expansion.
CoreWeave shares sank 15.5% Wednesday while yields on the company’s junk-rated bonds rose to nearly 15%, underscoring mounting investor unease over debt-fueled AI infrastructure spending. The yield to maturity on its 9.625% bond due 2032 stood at 14.8%, while its 9.75% bond due 2031 was about 14.9%, reflecting falling bond prices. CNBC reported CEO Mike Intrator told employees the company’s backlog can cover its debt obligations. Analysts cited broader pressure from rising rates, but said CoreWeave’s heavier borrowing and aggressive data-center buildout have made it a focal point for worries about how AI companies will finance growth.