Nvidia, AMD Bounce as CoreWeave Insurance Costs Climb — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Nvidia rose 2.78% to $186.64 Friday after plunging 9.3% Thursday, while AMD jumped 11.04% to $449.04 after a 17.3% collapse; both remained below their October peaks.
- Taiwan saw its benchmark drop more than 8% during its worst week in months; TSMC hit its daily limit-down threshold, South Korea’s KOSPI lost 6% Friday, and Taiwanese officials asked state-owned banks to help support prices.
- US Tech 100 gained 1.85% to 27,007.3 Friday but remained down more than 5.5% over the week, showing that the bounce had not restored the prior trend.
- Ballotpedia found voters in 40 of 41 local November 3 contests favored limiting development, including by rejecting pro-construction measures; some votes were advisory, and the midterms accelerated concern about data-center restrictions.
- CoreWeave’s cost of insuring against default climbed above 1,000 basis points Friday while broader bond markets remained relatively normal, pointing to strain in the riskiest AI financing rather than a system-wide crisis.
- Microsoft, alongside Alphabet, Amazon and Meta, is profitable with established customers and substantial cash flows, unlike smaller AI-cloud providers that depend on repeatedly borrowing to expand and can therefore withstand setbacks better.
- Applied Materials, CoreWeave and Cisco are due to report next week, while inflation data will influence borrowing-cost expectations; stable orders and manageable debt support the correction case, whereas canceled projects, failed refinancing and shrinking sales point to cracking financial foundations.
Why it matters: CoreWeave’s default-insurance cost above 1,000 basis points shows where the sharper exposure sits: highly financed AI-cloud providers. Broader bond markets remained relatively normal, while Microsoft, Alphabet, Amazon and Meta have the cash flow to absorb setbacks that smaller borrowers lack, making the selloff more selective than the headline rout implies.
Ask SkimNews
