Chip CDS widen as bondholders stop subsidizing overpriced hardware

GaryMarcus · x · 2026-08-26

Market data shows CDS spreads for Broadcom (AVGO) and NVIDIA (NVDA) have widened again, both reaching record highs. This indicates bondholders are no longer willing to subsidize what they perceive as overpriced GPUs, TPUs, and memory chips, reflecting a more cautious market valuation of compute hardware.

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