NewsMV
More than $1 trillion in market value evaporated from 20 of the world's largest AI and semiconductor stocks this week, driven by credit concerns at CoreWeave and hotter-than-expected inflation data.
The sell-off marked a sharp reversal for investors who had previously embraced the AI trade with optimism, now facing a sector under pressure from funding worries and macroeconomic headwinds.
CoreWeave has become a focal point of anxiety, with yields on its debt climbing as investors price in higher risk.
The yield to maturity on the company's 9.75% bond due in 2031 reached 15.78%, while the spread on its five-year credit default swaps briefly exceeded 1,140 basis points.
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