CoreWeave drops 15.5% as hot inflation hits AI's leveraged buildout; TSMC, Anthropic demand stays red-hot
pdamodaran · x · 2026-10-17
- Hot inflation set the trap: US September CPI printed 3.7% YoY (vs 3.6% expected) and PPI rose 1.3% MoM (vs 0.5% expected), lifting rate-hike odds and compressing growth valuations. Nasdaq fell 3.6% for the week, S&P 500 -1.4%.
- AI's leveraged edge took the hit: CoreWeave dropped 15.5% in a day, its bond yields pushed above 15%, and its 5-year CDS spread hit a record 1,194.5bps. Chip stocks fell eight straight sessions; South Korea's Kospi dropped 7.57% Thursday.
- Demand never cracked: TSMC posted a sixth straight record quarter with net profit up 68.7% YoY and raised full-year revenue growth guidance to 44%; Anthropic reported Q3 revenue of $16.8B, up 45% sequentially. The problem is the price of money, not the product.
- India went the other way: Sensex gained 3.11% for the week to close at 74,729, led by IT — Tech Mahindra surged 8.45% after a 32.7% quarterly profit jump.
- Next week's question: who funds the buildout, and at what price?
Related event: AI Infrastructure Stocks Slump as Debt Costs Trigger Selloff(2 posts)→
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