Nebius Group N.V.

(NASDAQ Global Select)
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Somewhat Bearish -30

CoreWeave and Nebius Stocks Sink as AI Debt Spreads Widen, Goldman Sachs Says

Financial outlook AI-generated analysis

πŸ“‰ Nebius Group shares fell about 9% alongside CoreWeave, with weekly drops exceeding 20% as AI debt spreads widened significantly.

πŸ’° CoreWeave's quarterly interest expense surged to $640 million from $267 million a year earlier, reflecting high borrowing costs.

πŸ“Š CoreWeave reported a debt-to-equity ratio of 8.94 and unsecured bonds trading at a 15% yield, signaling financial strain.

πŸ’Ό CoreWeave's founders sold $3.3 billion of stock recently while maintaining a $104 billion backlog as of June 30.

πŸš€ Nebius raised $4.34 billion from convertible notes and $2.85 billion from treasury share sales in the first half of 2026.

πŸ“ˆ Goldman Sachs analyst Amanda Lynam expects a near-term reversal of the AI debt selloff despite widening spreads.

⚠️ CoreWeave's CEO stated the market was acting irrationally, though analysts warn bond yields must drop below 15% to ease pressure.

🏦 Cantor Fitzgerald noted that nearly all of CoreWeave's planned 2027 capacity is already sold despite recent stock declines.

Bullish Signals
  • Nebius Group raised $4.34 billion from convertible notes and $2.85 billion from treasury share sales in the first half of 2026 to fund growth.
  • CoreWeave maintains a substantial backlog of $104 billion as of June 30 and added more than $25 billion in new commitments early in the third quarter.
Risk Factors
  • CoreWeave's unsecured bonds hit a 15% yield, indicating significant financial strain and high cost of capital.
  • CoreWeave's quarterly interest expense rose sharply to $640 million from $267 million a year earlier, pressuring margins.
  • Goldman Sachs reported that US dollar high-yield AI debt spreads widened by 25 basis points recently, reaching new highs.
  • CoreWeave's debt-to-equity ratio stands at 8.94, reflecting a highly leveraged balance sheet in a high-rate environment.
Full Analysis
Shares of Nebius Group and CoreWeave fell approximately 9% on Friday, with weekly declines exceeding 20% for some investors. The drop is attributed to widening credit spreads in the AI debt market, specifically highlighted by Goldman Sachs analyst Amanda Lynam regarding neoclouds trading off credit markets rather than traditional equity valuations. CoreWeave's financial strain is evident with unsecured bonds hitting a 15% yield and quarterly interest expenses rising sharply to $640 million from $267 million the prior year. The company reported a debt-to-equity ratio of 8.94, while its founders sold $3.3 billion in stock recently. Despite these pressures, CoreWeave maintains a substantial backlog of $104 billion as of June 30 and added over $25 billion in new commitments early in the third quarter. Nebius Group has funded its growth primarily through equity and convertible notes, raising $4.34 billion from convertibles and $2.85 billion from treasury share sales in the first half of 2026. While CoreWeave's CEO described recent market reactions as irrational, analysts suggest that a drop in bond yields below 15% would be necessary to ease pressure on the company's funding costs. The broader sector faces scrutiny over AI buildout economics, with Goldman Sachs noting that US dollar high-yield AI debt spreads widened by 25 basis points recently. Strategist Amanda Lynam expects a near-term reversal of the selloff but warns that differences in credit quality across AI debt issuers will likely persist, particularly for lower-rated borrowers exposed to higher-for-longer interest rates.