Nvidia’s credit risk has surged, with credit default swap spreads approaching record levels. The CDS spread rose to 82 basis points in late July before easing slightly to 72.11 basis points by August 11, reflecting growing perceived risk tied to the company’s debt. This increase is driven by market concerns over Nvidia’s massive AI expansion and substantial financing commitments. Despite these concerns, Nvidia remains profitable and is not classified as a distressed borrower.
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