Nvidia CDS Spreads Triple, Top Meta as AI Cloud Exposure Fuels Credit Risk Concerns

Nvidia's (NVDA) five-year credit default swap price rose to 127 basis points on Tuesday from 39 basis points at the end of 2025, a 226% increase, according to S&P Global Market Intelligence data cited by Benzinga. The CDS price surpassed that of Meta (META), one of Nvidia's largest customers, on October 21. Nvidia's credit risk is closely tied to CoreWeave (CRWV). CoreWeave's CDS spread jumped from 903 basis points to a record 1,167 basis points between October 12 and 22, while Nvidia's rose from 87 to 118 basis points, then 130 the next day. The two companies' CDS spreads had a 0.80 correlation coefficient over the past year, the highest among large tech firms. Nvidia bought $2 billion of CoreWeave stock at $87.20 per share in January and backs CoreWeave revenue through a $6.3 billion purchase commitment signed in September 2025, under which Nvidia must absorb unsold compute capacity through April 2032. Nvidia also guaranteed land, power and building shells for some AI cloud partners' data center leases. On Tuesday, Nvidia said it would invest $3 billion in Meta's roughly $37.5 billion equity offering.