Nvidia 5-Year CDS Spikes 14 Basis Points to Record 82 bp on $750B AI Financing Push

According to Bloomberg, Nvidia's 5-year credit default swap (CDS) price surged approximately 14 basis points to around 82 basis points on July 28, marking the largest single-day jump on record. The spike reflects market repricing of credit risk linked to the company's estimated $750 billion in AI infrastructure deals, including potential $250 billion guarantees for OpenAI and over $500 billion in cooperation with South Korea's SK Group.

Nvidia stock fell 5% on July 27, dragging the Nasdaq down 0.2%, as investors reassess whether AI capital expenditure can be sustained. Rising CDS prices typically signal growing concerns about debt default risk, indicating credit markets view the company's financing obligations and guarantees with increased caution.