CoreWeave Bond Spike Drags Nvidia Shares Lower

The week's selloff began not at a chipmaker but at CoreWeave, a cloud provider that rents out AI computing power. A spike in its bond yields revived worries about debt-heavy AI customers and pulled semiconductor shares lower, with Nvidia caught up in the move as both an investor in CoreWeave and its chip supplier.

The episode puts a spotlight on a question the body poses directly: whether Nvidia's growth is only as sturdy as the balance sheets of the companies buying its chips. Nvidia sells complete data center systems to cloud giants, AI labs, and specialists like CoreWeave, and data centers now bring in the vast majority of its revenue. The body notes that the answer depends less on one cloud provider than on who else is paying, and points to a customer list that argues against a single point of failure: the new Vera Rubin platform is in full production at partners including Microsoft Azure, Google Cloud, and Oracle, not just CoreWeave.

Nvidia's own financial position stands in contrast to the concerns about its customers. Over the past 12 months it earned $192.88 billion in net income and kept about 65% of its sales as operating profit, a margin the body attributes to pricing power. Revenue grew about 66.9% a year over the past five years, and in its fiscal second quarter of 2027 revenue reached $96.2 billion, up 106% from a year earlier. Management guided third-quarter revenue to $108.0 billion, plus or minus 2%, without counting on any data center compute sales in China. Nvidia is also lining up outside money: financing platforms with firms including Apollo, BlackRock, and KKR aim to mobilize more than $500 billion in third-party capital, subject to final agreements. Whether that broader base is enough to insulate the stock from episodes like this one is likely to remain a focus for investors.