Tech Down on Credit Cost Fears - Tech Roundup

Dow Jones
2 hours ago

Shares of technology companies slid as the Treasury market was thrown into a volatile state by stronger-than-anticipated inflation data.

Shares of companies borrowing heavily to fund artificial-intelligence ambitions were hit particularly hard because of the outlook for credit costs.

Shares of Oracle fell by roughly 9%. The cloud-computing services provider has borrowed billions of dollars to accelerate development of the data centers.

The PHLX "SOX" Semiconductor Sector index fell about 5%, with Nvidia, another company borrowing to fund AI infrastructure, losing more than 3% of its value.

Shares of CoreWeave tumbled by about 15% after investors pointed to credit stress in the company's bonds. CoreWeave is backed by Nvidia and operates data centers.

OpenAI's head of computing capacity, Sachin Katti, is leaving the company next month. The AI model maker also reportedly subject of corporate espionage after an employee was caught with a hidden camera.

Dutch semiconductor equipment maker ASML Holding shares fell despite reporting robust sales of its machines due to rising AI chip demand.

 

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