Jeremy Bowman, The Motley Fool Wed, October 14, 2026 at 2:01 PM EDT 3 min read CRWV -16.21% IREN -12.20% NVDA -3.36% ORCL -9.12% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
CoreWeave, one of the riskier stocks in the AI basket, was taking a dive today after a chart of its bond yields went viral on X, sparking concerns about its long-term ability to remain solvent.
As of 1:00 p.m., the stock was down 14.4% on the news, dragging down peers like Nebius, Oracle, and IREN with it.
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CoreWeave's business model relies on borrowing money to spend on chips and data centers to then rent out that computing capacity. The company already has $35 billion in debt, and its interest expense is driving steep losses.
Investor Chamath Palihapitiya posted a chart on X yesterday, showing that CoreWeave's bond yield had reached a new all-time high at 15%, up from 9% this summer, as bond yields in general have risen. Palihapitiya suggested a private credit bubble could be forming, and Elon Musk replied "Yikes" to the post.
The 15% rate is just one loan, but the post did spark some alarm about neocloud stocks generally, as they're likely to face pressure if rates continue to go up.
After Nvidia had to step into support its IPO, CoreWeave soared in its first months on the market, but the stock is now trading near a 52-week low even as the broader AI sector has continued to rise.
If interest rates continue to move higher, it will be even harder for CoreWeave to turn a profit, and its debt could eventually unravel. Thus far, the company has continued to post strong top-line growth, and it's expected to deliver 159% revenue growth to $3.54 billion in its third-quarter earnings report.
That shows CoreWeave doesn't have a demand problem, but the concerns about its debt are rational. Expect the pressure on the stock to continue unless rates ease or the company makes progress on the bottom line.
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Jeremy Bowman has positions in CoreWeave. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy.
Why CoreWeave Stock Tumbled Today was originally published by The Motley Fool
