Nvidia’s 5-year credit default swap spreads hit 57.25 basis points, up from roughly 42 basis points in late June, marking the largest spike on record for the company despite its approximately $50 billion in cash. This increase reflects market concerns about the AI sector’s ability to service massive financial commitments as hyperscalers plan to spend over $750 billion on AI data center infrastructure in 2026, potentially reaching $870 billion in 2027. Nvidia announced plans to issue between $20 billion and $25 billion in high-grade bonds around June 15, 2026, its first bond issuance in five years, with demand reportedly reaching $85 billion, roughly a 4x oversubscription. This dynamic shows markets remain willing to fund the AI sector despite rising credit risks, but the scale of spending suggests AI infrastructure has become a macroeconomic variable affecting all asset classes.
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