Investors are increasingly using credit default swaps (CDS) to hedge debt issued by companies in AI infrastructure, as these firms raise large sums for data centres and chips. Morgan Stanley Research reported weekly CDS trading linked to bonds from Oracle, SpaceX, Alphabet, Amazon, Meta, Broadcom and Nvidia averaged over $9 billion in September, up from under $2 billion per week in July. AI-linked debt issuance is estimated at $466 billion so far in 2026, versus $101 billion in the same period of 2025. Credit protection costs have hit record levels for several firms, including Oracle at 322 basis points (from 144 at the start of 2026), SpaceX at 226 basis points, Meta at 108 and Nvidia at 101 basis points.
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default riskartificial intelligencebondsdata centersNVDA
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Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/23/2026 | 211.00 |
| Change that session | -0.57% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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