CoreWeave 's stock and bonds were both hit on Wednesday as investor fear grew that some technology companies are borrowing too heavily for the artificial intelligence build-out. Shares of the so-called neocloud nosedived 16%, while yields on its debt jumped higher. The yield to maturity on its 9.625% bond due in 2032 is sitting at 14.8%, while that of its 9.75% bond due in 2031 is around 14.9%. Bond yields move inversely to prices. While investors were once excited about getting in on the AI action, investor sentiment has started to shift, said Luis Alvarado, co-head of global fixed income strategy at Wells Fargo Investment Institute. Now, investors are demanding more risk compensation, he said.
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