CoreWeave, Inc. (CRWV) Bond Yields Surged Above 15%: Is Its AI Data Center Expansion Becoming Risky? Attiya Zainib Tue, November 10, 2026 at 4:29 PM EST 3 min read CRWV +1.76% ^GSPC -0.38% Trade CRWV 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.
Moon Capital Management an investment management company, recently released its Q3 2026 investor letter. A copy of the letter can be downloaded here. The letter reported that its equity portfolio gained approximately 4% during the first nine months of 2026, compared with an approximately 12% year-to-date return for the S&P 500. The firm noted that market gains remained narrow, with nearly half of S&P 500 constituents declining during the period and the median stock gaining only about 4%. Much of the letter focused on AI investment, as major technology companies are expected to spend approximately $1.2 trillion on capital expenditures in 2027 and another $1.4 trillion in 2028. Although the semiconductor industry has benefited from strong demand, with the S&P Global Semiconductor Index rising approximately 95% through September, Moon Capital questioned whether the enormous infrastructure investments would generate adequate returns. The firm has avoided direct AI investments because it remains uncertain which companies will ultimately capture the economic benefits. The firm remains focused on businesses whose economics it can assess with confidence and whose shares trade at meaningful discounts to estimated intrinsic value. In addition, please check the Fund's top five holdings to know its best picks in 2026.
In its third-quarter 2026 investor letter, Moon Capital Management highlighted stocks like CoreWeave, Inc. (NASDAQ:CRWV). CoreWeave, Inc. (NASDAQ:CRWV) is an AI-focused cloud computing company that provides access to high-performance computing infrastructure, including GPUs, for artificial intelligence training and inference. The one-month return of CoreWeave, Inc. (NASDAQ:CRWV) was -40.33% while its shares traded between $40.58 and $138.25 over the last 52 weeks. On November 9th, 2026, CoreWeave, Inc. (NASDAQ:CRWV) stock closed at approximately $48.98 per share, with a market capitalization of about $27.02 billion.
Moon Capital Management stated the following regarding CoreWeave, Inc. (NASDAQ:CRWV) in its Q3 2026 investor letter:
"CoreWeave, Inc. (NASDAQ:CRWV), an AI cloud computing provider that rents computing power to companies such as Microsoft and OpenAI, has financed much of its rapid buildout through borrowing. In mid-October, yields on some of its bonds surged above 15%, reflecting growing investor concern about the debt required to fund a massive data center buildout well before the profitability of those investments has been established. According to Barclays, $37 billion of the $80 billion of data center bonds issued this year have been rated junk, or below BBB, roughly twice the percentage of total issuance that was rated junk in 2025 (Click Here To Read The Letter In Detail)."
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In another article, we covered CoreWeave, Inc. (NASDAQ:CRWV) and shared Jim Cramer's views on the company. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.
This article is originally published at Insider Monkey.
