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Nvidia’s favorite stocks are getting shellacked as AI credit risk spreads

Nvidia’s “House of GPUs” is looking a little wobbly.

Shares of Applied Digital, CoreWeave, and Nebius — three of the four biggest equity positions held by the chip designer as of September 30 — are getting crushed on Monday.

Nvidia owned about $3.6 billion worth of these data center and neocloud stocks (with the overwhelming majority in CoreWeave) per its most recent 13F filing.

The AI credit risk that’s been most talked about in reference to Oracle’s widening credit default swaps spreads is also present in some of these firms, as well.

An Applied Digital bond due in 2030 is trading below $96 for the first time this month. That issuance was made to support data centers where CoreWeave will be the main tenant.

CoreWeave, which earlier this year received warrants enabling it to purchase a large chunk of Applied Digital shares as part of a data center leasing deal, sank last week after announcing a $2 billion convertible note offering that was later upsized.

Of course, it’s not just Nvidia-owned stocks, but the entire data center ecosystem that’s under pressure on Monday. Cipher Mining and IREN are also getting walloped — with Monday’s crypto tumble also likely weighing on these two bitcoin miners turned data center companies.

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Matt Phillips33m

Bitcoin-sensitive stocks hammered as crypto declines

Bitcoin-sensitive stocks tumbled Monday, enduring a much steeper drop than the keystone crypto asset itself, which was down nearly 4%, falling below $87,000, as of 12:20 p.m. ET.

Goldman Sachs’ themed basket of bitcoin-sensitive equities was down more than 8%. (It consists of companies tied to bitcoin, either through mining, digital payments, crypto investment, or blockchain technology.) It was one of the worst performers among Goldman’s thematically curated baskets of shares on Monday.

Among the basket’s constituents, miners Cipher Mining, CleanSpark, Hut 8, TeraWulf, and IREN were getting the worst of it.

At midday, the basket was on its way to its worst day since November 24, when bitcoin was also languishing below $90,000 and the broader tech sector was going through a brief downturn related to rising worries about durability of the AI boom.

Among the basket’s constituents, miners Cipher Mining, CleanSpark, Hut 8, TeraWulf, and IREN were getting the worst of it.

At midday, the basket was on its way to its worst day since November 24, when bitcoin was also languishing below $90,000 and the broader tech sector was going through a brief downturn related to rising worries about durability of the AI boom.

GameStop rallies on bullish options activity as Michael Burry teases post

And let’s not sell the artist formerly known as “Best Buy Rilie” short, either.

GameStop store with person walking by

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Matt Phillips2h

GE Vernova up as Evercore ISI initiates shares with “outperform”

Analysts at Evercore ISI began coverage of AI energy play GE Vernova with an “outperform” rating and a price target of $860 on Monday, citing a number of reasons to be bullish about the maker of turbines used for power generation. Evercore’s price target implies gains of roughly 27% for the shares.

Analysts at the shop wrote of GE Vernova:

“1) Growth is strong and well supported by backlog in both Power and Electrification… with visibility into the 2030s. Despite headwinds from a shrinking Wind business, we see 12% CAGR 2026-28E, the strongest growth ex-Siemens Energy in our coverage.

2) Margin is expanding with operating leverage, pricing & productivity in both Power & Electrification. Full ownership of Prolec should drive another step up in estimate revisions upon closing (mid-2026). The equipment dynamics (pricing, margin expansion) should repeat in the service business 2030+.

3) Shareholder returns are very well supported, with EBITDA margins rising from 7% in 2024 to 21% in 2028 and FCF of >$5bn pa on average — recent buyback upgrade to $10bn (vs. $6bn prior) and dividend increase amplify an already attractive growth algorithm.”

There are some risks to the rally for the shares, which have more than doubled this year. For instance, the company’s struggling wind power division could weigh on results. Also, the high valuations on the stock — its forward price-to-earnings ratio is roughly 55x — make it vulnerable to rapidly shifting investor vibes toward AI, analysts say.

“Investment sentiment is tied up in the AI/Data centre cycle, so any suggestion of delays or diminished energy demand would weigh on the stock as investors would fear over-capacity,” they noted.

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Nvidia gains after launching new suite of open models

Nvidia extended gains in early trading after announcing an updated edition of its open models, the Nemotron 3.

This family of models comes in three “sizes”: Nano (available today), Super, and Ultra (both expected to be launched in the first half of next year). These sizes reflect the different parameters of each model, which govern the complexity of a given request it can handle.

The company highlighted the flexibility benefits of these models, saying they can be integrated with proprietary counterparts to produce cost savings.

“As multi-agent AI systems expand, developers are increasingly relying on proprietary models for state-of-the-art reasoning while using more efficient and customizable open models to drive down costs,” per the press release. “Routing tasks between frontier-level models and Nemotron in a single workflow gives agents the most intelligence while optimizing tokenomics.”

This strong start to the week helps reverse a substantial run of underperformance from Nvidia versus its peers. It’s the only member of the VanEck Semiconductor ETF that’s declined since the S&P 500 closed at an intermediate bottom on November 20.

Last week, the chip designer closed at its lowest level compared to this fund of 2025, falling below the trough seen in the wake of the DeepSeek freak-out, where nearly $600 billion in market cap was obliterated in a single session.

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Opendoor jumps after announcing Coinbase Canada CEO Lucas Matheson will be its next president

Opendoor is surging this morning after announcing that Lucas Matheson, CEO of Coinbase Canada, will be its next president.

Management changes have been a key catalyst for Opendoor Technologies as the online real estate company looks to reverse its fortunes. Shares booked a record one-day gain of nearly 80% on September 11, following its announcement that cofounders Keith Rabois and Eric Wu were rejoining the company to serve on its board of directors and that Shopify COO Kaz Nejatian would serve as CEO. Matheson worked at Shopify from 2016 to 2021, with his tenure overlapping with Nejatian’s for two years.

Per the press release, Matheson will “oversee Corporate Development, Financial Planning & Analysis, and emerging strategic initiatives, including the Company’s exploration of how blockchain technology and tokenization might create new pathways to homeownership.”

Traders have enthusiastically greeted previous rumors and reports that Opendoor would pursue real estate tokenization, as this would seem to de-risk the inventory of homes it holds on its balance sheet by enhancing the liquidity for those assets, freeing up the company to go after even higher volumes.

In addition, Opendoor also said that Christy Schwartz would be its permanent CFO, after she was appointed to that position on an interim basis in September.

“We looked everywhere,” Nejatian said in the press release. “We talked to CFOs from nearly every sector. And we realized the person with the deepest command of our business, the trust of every team, and the bias for action we need was already here.”

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