CoreWeave bond yields top 16% as AI debt worries spread
The stock fell again premarket after a 15% drop, with chip stocks sliding with it.
AI and chips · Thursday, October 15, 2026 · 10:15 AM ET
The AI selloff continued on Thursday as debt worries around CoreWeave deepened. The company's stock fell about 6% in premarket trading on Thursday after dropping more than 15% on Wednesday, and the yield on its bonds due 2031 rose above 16%, Reuters reported.
The debt picture
Reuters said CoreWeave has about $50 billion in debt and that the cost of insuring it against default has climbed to roughly 1,000 basis points, a level that implies a nearly 63% chance of default within five years, up from about 30% a year ago. CEO Mike Intrator told employees in a memo, seen by Reuters, that the company's deal backlog more than covers its debt. Reuters also reported that Gartner said about 80% of neocloud providers could shut down by 2030. Related: our CoreWeave story.
Chips and the market
Reuters said the Philadelphia Semiconductor Index has lost 11.6%, or more than $1.6 trillion in value, over six sessions. The Wall Street Journal said the Nasdaq opened more than 1% lower. In its 9:40 AM update, the Journal had the Nasdaq down about 1% at the open and said investors were turning to government bonds, pushing Treasury yields lower, even after strong results from Anthropic and TSMC.
See also this morning's Toast & Tickers and our TSMC story.