The cost of insuring the debt of major US technology companies against default has reached new highs after a series of disappointing quarterly earnings reports. The credit default swap (CDS) spreads of Intel, Amazon, Alphabet and SpaceX have notably reached record levels. Investors are now pricing in greater risk associated with the aggressive financing of artificial intelligence projects and companies’ ability to manage their substantial debt. The next quarterly results, debt restructurings, new financing arrangements and statements from executives will be closely watched to assess the sector’s financial stability.
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