Nvidia CEO says CoreWeave needs no backstop as shares extend slide - Investing.com

Lenders are getting nervous about CoreWeave (CRWV -11.95%), a cloud company that rents out artificial intelligence (AI) chips made by Nvidia (NVDA -1.36%). In June, CoreWeave sold $1.25 billion in unsecured notes due 2032 at face value, with a 9.625% coupon. On Tuesday, Oct. 13, the yield on these notes reportedly reached almost 15% before ending at a record of around 14.5%. A bond's yield climbs when the price drops. Put another way, bond buyers now want much more to lend to CoreWeave than they did four months ago. The stock followed on Wednesday. CoreWeave shares dropped about 15% as of this writing, and Nvidia, which is both CoreWeave's chip supplier and one of its shareholders, fell about 3% to roughly $221. Should Nvidia investors worry? I don't think so -- at least not about CoreWeave itself. What Nvidia directly has riding on CoreWeave turns out to be small next to what the chipmaker earns. CoreWeave's borrowing problemCoreWeave's trouble doesn't seem to be demand. Showing how quickly the business is still growing, CoreWeave's second-quarter revenue more than doubled year over year to around $2.6 billion.