Nvidia’s extended AI ecosystem is wobbling, and Wall Street is starting to notice. Several stocks tied closely to Nvidia’s data center buildout are getting hit hard as concerns around debt and credit risk creep into the AI trade.
Shares of Applied Digital $APLD ( ▲ 15.67% ) , CoreWeave $CRWV ( ▲ 22.99% ) , and Nebius $NBIS ( ▲ 13.95% ) , three of the four largest equity positions Nvidia held as of September 30, were sharply lower Monday, dragging down a corner of the market that had previously felt untouchable.
When the Balance Sheet Matters Again
Nvidia owned roughly $3.6 billion worth of these neocloud and data center companies, with the bulk of that exposure concentrated in CoreWeave, according to its most recent 13F filing. That concentration is starting to look riskier as investors zoom out from AI hype and back into funding costs.
The same credit concerns that recently surfaced around Oracle are showing up here too. These companies are capital intensive, heavily leveraged, and dependent on stable financing conditions to keep building.
Credit Markets Flash Yellow
Applied Digital’s 2030 bond dropped below $96 for the first time this month, a signal that bond investors are demanding more compensation to hold the debt. Those bonds were issued to fund data centers where CoreWeave is the primary tenant, tying the two companies even closer together.
CoreWeave added fuel to the fire last week when it announced a $2 billion convertible note offering that later had to be upsized. The move raised cash, but it also raised eyebrows about how much capital these AI infrastructure players still need.
The Pressure Is Spreading
This isn’t just a Nvidia-adjacent problem. The broader data center and crypto-powered infrastructure space was under pressure as well. Cipher Mining $CIFR ( ▲ 7.76% ) and IREN $IREN ( ▲ 10.06% ) were both hit hard, with Monday’s crypto selloff likely adding to the downside for bitcoin miners that pivoted into data centers.
The takeaway: AI demand is still there, but investors are starting to care less about GPUs and more about who’s footing the bill.