COREWEAVE SLUMP SPOTLIGHTS GROWING BURDEN OF DEBT BEHIND AI BOOM

What happened: CoreWeave shares steadied after a slump tied to investor worries about the debt financing behind the AI build-out. Nvidia CEO Jensen Huang played down the fears, saying CoreWeave's financial strength is improving. Key numbers: About $50 billion in debt. Why it matters: The slump fueled a global rout in AI stocks, with the Philadelphia Semiconductor Index down 11.6% over six sessions. Analysts question whether AI demand and a profitable business model are the same thing, and warn rising capital costs could hurt the most leveraged players.

CoreWeave shares steadied after a slump tied to investor worries about the debt financing behind the AI build-out. Nvidia CEO Jensen Huang played down the fears, saying CoreWeave's financial strength is improving.

The slump fueled a global rout in AI stocks, with the Philadelphia Semiconductor Index down 11.6% over six sessions. Analysts question whether AI demand and a profitable business model are the same thing, and warn rising capital costs could hurt the most leveraged players.