Nvidia and AMD stocks rebounded Friday after suffering steep losses the previous day, without recovering their October highs. The turmoil spread across Asia, with South Korea’s KOSPI falling 6% and Taiwan’s benchmark declining more than 8% over the week, prompting authorities to ask state-owned banks to support prices. Potential restrictions on data centers and the high cost of AI infrastructure are testing investors’ confidence. The cost of insuring against a default by AI-cloud provider CoreWeave climbed above 1,000 basis points, signalling stress in the riskiest corners of AI financing without proving a systemic crisis. Results from CoreWeave, Applied Materials and Cisco, along with inflation data, should clarify whether orders remain solid or the market’s financial foundations are beginning to weaken.
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