GE Vernova Drops Nearly 6% as CoreWeave Bond Rout Sparks AI Infrastructure Selloff

GE Vernova shares fell approximately 5.9%, closing around $945, on Wednesday as a severe selloff in CoreWeave's stock and bonds spread anxiety across the entire AI infrastructure sector. Investors reassessed the sustainability of debt-fueled AI buildouts after yields on CoreWeave's unsecured bonds surged to nearly 15%, with its 9.625% bond due 2032 reaching a yield to maturity of 14.8% and its 9.75% bond due 2031 touching roughly 14.9%. The broader Nasdaq Composite closed down 1.9% on the day.

CoreWeave shares plunged as much as 17% amid alarm over the company's financing model. CoreWeave has raised more than $30 billion this year and posted a net loss of $626 million in the second quarter, with net interest expenses of $640 million in that same period. CEO Mike Intrator pushed back in an internal memo, saying the market was acting irrationally and pointing to the company's $104 billion revenue backlog as evidence that its debt obligations are well supported.

GE Vernova, which has drawn investor interest through its role as a gas-turbine and power infrastructure supplier to AI data centers, carries a $176 billion backlog and is scheduled to report earnings on October 28. The stock's slide on Wednesday coincided with notably elevated options activity, with 16,448 GEV contracts traded, representing approximately 1.6 million underlying shares, or about 76.7% above typical volumes. A Form 4 filing on October 14 also disclosed insider activity at GE Vernova LLC.