Nvidia Rebuffs Need for CoreWeave Backstop as AI Debt Rout Pressures Shares

Nvidia shares dropped roughly 3% to $221 amid an escalating sell-off across AI cloud providers triggered by debt distress at key partner CoreWeave. Nvidia CEO Jensen Huang dismissed providing a financial backstop, asserting CoreWeave's financial position is strengthening despite its five-year credit default swap spread hitting a record 1,194.5 basis points. Market anxiety deepened after Gartner warned up to 80% of neoclouds could vanish by 2030, sending CoreWeave shares down over 15% and pushing its 2032 note yields to a record 14.5%. Nvidia holds about 47.2 million CoreWeave shares, though CoreWeave spending represents under 8% of Nvidia's revenue.