This podcast examines the recent selloff in chip and AI stocks after CoreWeave's bond yield reached 15%, equivalent to about $640 million in interest this quarter. The chain began with a chart posted by Chamath Palihapatia and a reply from Elon Musk, and CoreWeave fell 15% within 24 hours while around $1.6 trillion was wiped out of chip and AI stocks. The host finds it puzzling that CoreWeave reported 112% revenue growth and a $129 billion backlog, and that TSMC, Dell and Oracle posted record quarters yet their shares still fell. Semiconductor stocks had eight straight losing days, the longest losing streak since 2008.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
CoreWeavesemiconductorsartificial intelligencebonds
Open a keyword to see other news on the same topic.
Related tickers and likely impact
MSFT
• NeutralMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $4.0T |
| Close on 10/20/2026 | 531.87 |
| Change that session | -0.31% |
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/20/2026 | 216.47 |
| Change that session | -0.29% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- AI Cloud Stocks Rise as Musk Calls Overcapacity Talk 'Ridiculous': Nebius and CoreWeave Gain 3%, Oracle Edges Higher
AI cloud stocks rebounded from last week's selloff, with Nebius up 3% to $176.60, CoreWeave up 3% to $63.77 and Oracle up 1%. On SpaceX's Q3 2026 earnings call, Elon Musk called overcapacity talk 'ridiculous' and said hyperscalers keep asking to rent more compute, reversing the tone of his 'Yikes' post on X the week before, which followed rising yields on CoreWeave's bonds. Nebius said it could sell all of next year's planned capacity at current prices and has $37.5 billion in remaining performance obligations, though it faces customer concentration and heavy infrastructure spending. The article suggests financing, especially CoreWeave's reliance on debt, will decide the next move, and that these shares remain volatile.
- The All-In Hosts Asked If the AI Trade Is Cracking. Here’s What Income Investors Should Do
The All-In hosts asked whether the AI trade is breaking as CoreWeave’s stock sold off, with its bonds marked down to 80%. CoreWeave borrows heavily to expand its GPU capacity: second-quarter revenue rose 112.3% to $2.575 billion, but free cash flow was -$5.74 billion and interest expense climbed to $640 million from $267 million a year earlier. Its 2032 bonds yielded 15% versus 5.09% for the 10-year Treasury, while the bulls argue demand remains massive and operating cash flow turned positive at $679 million. The article also points to Procter & Gamble and ADP as income-investor examples, both with yields below the 5.09% Treasury.
- AI jitters clobber South Korea's Elice as stock sinks 32% in trading debut
Shares of South Korean data center provider Elice (0158S0.KQ) plunged 32% on their first trading day. Elice, which rents out AI compute capacity, raised about $151 million, with demand oversubscribing the IPO roughly 400 times. The sharp drop reflected investor worries about valuations and long-term profitability, especially if hyperscalers cut spending or borrowing costs rise further. The sell-off also tied into concerns about neocloud providers, after a viral chart of rising bond yields at Nvidia-backed CoreWeave (CRWV) highlighted its debt-heavy balance sheet; CoreWeave rebounded Tuesday after a 25% drop last week. HSBC analyst Abhishek Shukla set a $39 price target on CoreWeave, about 34% below current trading levels.
- Are Concerns Over CoreWeave's Debt Overblown? ETFs in Focus
CoreWeave (CRWV) shares fell about 20% in the week to 19 October 2026 as rising bond yields heightened concerns about its debt-funded growth. JPMorgan argues the business model remains fundamentally sound, and that concerns about rising debt and heavy cash burn may be exaggerated, since financing needs reflect rapid expansion. A typical five-year contract is estimated to generate an unlevered IRR in the mid-teens, comfortably above the blended cost of capital of 9% to 11%, and after repaying debt, CoreWeave could retain cash equal to about 16% of the contract value. Existing operations may not fund expansion until 2030, while contribution margins on Q2 2026 contracts are expected to be 5-10 percentage points higher than recently signed ones. CoreWeave raised its 2026 year-end ARR target to $18.5 billion-$19.5 billion and full-year revenue guidance to $12.4 billion-$13.2 billion from $12 billion-$13 billion.
- Stock investors are ready to move on from the AI rout. Credit investors are not
AI stocks rallied on Monday and the Nasdaq Composite gained 1%, but CoreWeave closed slightly lower and hit a 52-week low as investors remained concerned about its debt. CoreWeave’s 9.625% bond due 2032 had a 14.9% yield to maturity, and its five-year credit default swap (CDS) spread stood at about 1,082 basis points, above the 1,000 level generally seen as a sign of distress. Oracle’s five-year CDS spread widened to 315 basis points, up 311% from a year earlier, even as its shares rose 1% after a 9% drop last week. Goldman Sachs said dispersion is widening across AI-related high-yield bonds, with neoclouds and firms with significant frontier lab exposure at the center of funding-cost concerns. Economist David Rosenberg called Oracle the “canary in the coal mine,” citing its roughly $132 billion of net debt and BBB- rating, and said a downgrade to junk would be the clearest sign of contagion.
- Credit stress is threatening to unwind the AI bull. All eyes are on Oracle to hold the line
Oracle's bonds are sitting close to junk territory as markets cool on AI after CoreWeave's slump, and a credit downgrade could have cascading effects across AI financing. Its five-year credit default swap spread stood at 295 basis points, up 287% in one year, a level more in line with high-yield credits, while S&P rates Oracle BBB-, the lowest investment-grade level. The company has issued $118 billion in long-term debt to fund its buildout, and analysts estimate free cash flow of -$23.7 billion this year and -$36 billion in 2027. Deutsche Bank warns that a junk downgrade could force IG-only investors into sales, though Vanguard's Brad Collins says he would not extrapolate high-yield stress to investment grade.
Related markets
Latest news
- On October 23, how much interest would you earn after 6 months on a 100 million VND deposit at MB, VPBank, Techcombank, Sacombank, SHB and ACB?
Based on interest rate tables surveyed on the morning of October 23, for a 100 million VND deposit over 6 months with interest paid at maturity, VPBank offers the highest over-the-counter rate at 6.8% per year, or about 3.4 million VND in interest, followed by Techcombank at 5.75% (about 2.875 million VND) and Sacombank at 5.7% (about 2.85 million VND), while ACB has the lowest at 4.0% (about 2 million VND). For online deposits, VPBank again leads at 7.0% per year (about 3.5 million VND), followed by Sacombank at 6.6% and Techcombank at 6.45%, with ACB at 4.4%. The article notes that rates may change over time, depending on deposit amount and each bank's policies, and actual rates are agreed between the bank and the customer.
- SpaceX Is Working With Nvidia, Apollo And Other Top Tech And Consulting Firms On A Grok Partnership Program
SpaceX announced its Super Intelligence Partner Network to help businesses build, integrate and scale applications on its Grok AI platform. The network launches with more than 130 participants from technology, finance and management consulting, including Nvidia (NVDA), Apollo Global Management, Snowflake, Databricks and Bain & Co. It has two tiers: Transformation Partners that help clients restructure operations with Grok, and Marketplace Partners that build software integrations linking Grok to corporate databases and security systems. SPCX shares fell about 7% on the day as investors weighed the timing of a possible SpaceX-Tesla merger. The company said weekly paid users of Grok Bot rose above 800,000 as of October, double the previous month.
- Tech market, housing market, hotels & handbags
The Market Hang panel discusses Meta's stock split (META), Tesla's possible merger with SpaceX (SPCX), and signs that demand for luxury goods is starting to wane. Guests include Nancy Tengler, Barbara Doran, Jen Saarbach, Kristen Kelly and Kenny Polcari.
- Forget AI Stocks: 2 Cryptocurrencies to Consider Buying Instead
The article argues that the AI boom could cool, while nearly a dozen top cryptocurrencies have risen more than 100% this year. Hyperliquid (HYPE) is up 220% for the year and is estimated to control as much as 70% of the perpetual futures market on decentralized exchanges, but it remains off-limits to U.S. investors, and the Bitwise Hyperliquid ETF (BHYP) has traded since May. Zcash (ZEC) is up 136% year to date with a market cap of about $20 billion, and the Grayscale Zcash ETF (ZCSH) surpassed $1 billion in assets under management within its first 30 days. The article cautions that growth is not guaranteed: Hyperliquid needs approval to operate in the U.S., while Zcash is still about 80% below its 2016 highs.
- Warren Buffett's Successor, Greg Abel, Has 22% of Berkshire Hathaway Invested in This Stock That Just Crossed the $5 Trillion Mark
Greg Abel became Berkshire Hathaway's CEO at the start of the year and so far has made few major changes, closing some positions formerly managed by Todd Combs while keeping the company culture and most Buffett-era holdings. Apple (AAPL) is Berkshire's largest holding, about 22% of its public equity portfolio, and recently closed above a $5 trillion market cap, becoming only the second company to do so. In fiscal Q3 2026, Apple's revenue rose 16% year over year to $109.4 billion and EPS of $2.02 grew 29%, with iPhone sales reaching $54.3 billion, up 21.6%. The article argues that the iPhone 17, Apple's AI strategy, the foldable iPhone Duo and its large ecosystem could support long-term growth, though tariffs and legal challenges remain.
- Why TTM Technologies Stock Jumped Plunged 30% Today
TTM Technologies (TTMI) beat Wall Street expectations in its Q3 report, with sales up 59% year over year to $1.20 billion and adjusted earnings per diluted share rising from $0.67 to $1.46. The company also guided full-year sales and earnings above current analyst projections, though Q4 revenue guidance came in slightly below the Street view. The stock still plunged nearly 30% on the day after the data center and networking division missed its Q3 target by about 10%. CEO Edwin Roks blamed project timing at a major customer and acknowledged that wait times for key materials stretch from 12 to 24 weeks. Debt from the Epiq and Ophir acquisitions is expected to add about $20 million in interest expenses per quarter.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.