Market picks CoreWeave as AI rout deepens
CRWV•CoreWeave shares fell 15% on Wednesday and another 6% after market as the AI selloff deepened; yields on its debt due in 2032 rose above 15%. Investors moved into government bonds, while TSMC and ASML offered signs of continued AI demand.
1. AI selloff spreads
The AI selloff extended into Asia, where South Korea’s chip-heavy KOSPI fell more than 15% this week. Data-centre operators were at the center of investor concerns about debt burdens arriving before the payoff from leased computing power.
2. CoreWeave debt concerns
CoreWeave, a loss-making data-centre operator that owes nearly $50 billion, fell 15% on Wednesday and another 6% after market, wiping out a fifth of its value. Yields on its debt due in 2032 rose above 15%. CEO Mike Intrator said in a memo that markets can sometimes “misunderstand and act irrationally.”
3. Bonds and chip demand
Concerns about high-yield debt helped drive investors into Treasuries and sovereign bonds. The 30-year US government bond yield fell nearly 8 basis points during Asian trading, while Fed funds futures surged. TSMC was likely to report a sixth straight quarter of record earnings later Thursday, and ASML said customers were already looking to place orders for 2029 and 2030.
