NVIDIA’s five-year credit default swap spikes sharply higher, raising worries about AI infrastructure cycle financing pulling funds into the bond market

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PANews July 29 news: According to Caixin, NVIDIA’s five-year credit default swap (CDS) spread rose at one point by 14 basis points to 0.82%, the largest single-day intraday jump since November 2025, indicating a significant increase in investors’ concerns about NVIDIA’s credit risk. Market analysts believe the direct trigger for this credit-market abnormality was that NVIDIA may use its own credit to support OpenAI’s data center expansion.

The real concern is that NVIDIA plays multiple roles: while it ties together the interests of upstream and downstream in the AI industry chain, it could also create “circular financing,” making the risks more complicated. NVIDIA invests in, guarantees, or leases data centers; after projects receive funding, they then purchase NVIDIA chips. Chip sales growth, in turn, boosts NVIDIA’s profits and financing capacity, enabling it to continue supporting downstream customers.

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