Credit Stress in the AI Boom: When Debt Becomes the Market's Achilles Heel

Rising credit-default-swap costs across CoreWeave, Oracle and hyperscalers signal AI-debt stress may hit equities before analysts downgrade.

• CoreWeave credit alarm: CDS on CoreWeave blew out to ~1,100 basis points, implying roughly two-thirds default odds in five years, up from one-third a year ago; its bonds yield near 15-16%.
• Spreading to blue chips: CDS on Oracle (~300bps), Broadcom (~109bps), NVIDIA, Meta, Amazon and Google are at or near record/multi-year highs despite still-low absolute levels.

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