Nvidia’s credit default swap spreads have climbed toward record levels, highlighting a rise in perceived credit risk as investors scrutinize whether the company’s AI-driven expansion is being supported more by financing commitments than by underlying demand. The CDS spread, which measures the cost of insuring a company’s debt against default, reached 82 basis points in late July and later eased to 72.11 basis points by August 11. The move suggests markets are assigning greater risk to Nvidia’s debt, even though the company is still profitable and is not viewed as a distressed borrower. Investors are now focused on upcoming financial disclosures, any changes to Nvidia’s AI financing plans, and whether further moves in CDS spreads and the stock could affect forecasts for Nvidia to be the largest company by market capitalization on August 31.