NVIDIA CDS Spikes 14bps to 82bps on Record Surge Amid $750B AI Deal Concerns

NVIDIA's 5-year credit default swap cost hit a record high, rising 14 basis points to 82bps annually. This marks the largest single-day increase since trading began, driven by market anxiety over massive AI infrastructure financing.

Woofun AI data shows that NVIDIA's 5-year credit default swap price jumped 14 basis points to 82 basis points annually, representing the largest one-day increase since active trading commenced in November of last year.

The surge follows reports that NVIDIA's partnership with SK Hynix exceeds $500 billion, alongside discussions to provide up to $250 billion in guarantees for OpenAI's U.S. data center project and potential $350 billion in chip procurement financing. Sal Naro, Chief Investment Officer of Coherence Credit Strategies, noted that enormous capital expenditure for AI infrastructure is increasing bond market supply, raising concerns about opaque financing arrangements and off-balance-sheet transactions that could lead to credit rating downgrades.