The cost of insuring Nvidia's debt against default neared a record high ahead of Huang's departure
Instability at Nvidia Is Affecting Its Credit Risks / Photo: PhotoGranary02 / Shutterstock.com
The cost of protecting Nvidia's debt from default rose to nearly a record high on Thursday ahead of the company's board of directors' decision to remove CEO Jensen Huang, Bloomberg reported.
The cost of protecting the company's debt for five years rose by 3.25 basis points to 1.445 percentage points per year, according to data from ICE Data Services cited by the agency. The figure came very close to the high set on November 3.
Since the middle of the year, the cost of insuring Nvidia’s debt against default has more than tripled. However, the current level is still about half that of SpaceX and Oracle—hyperscalers with lower credit ratings whose debt the market considers riskier, Bloomberg noted.
Nvidia's board of directors has appointed Chief Financial Officer Colette Kress as interim CEO until the board finds a permanent CEO.
Huang's resignation was prompted by reports of several extramarital affairs, including one with a woman suspected of spying for China. Huang admitted only to having been unfaithful to his wife.
Nvidia shares plummeted 10% in premarket trading on November 12.
This article was AI-translated and verified by a human editor
