Nvidia CDS Spikes 14bps as US-Korea Semiconductor Stocks Plunge on China Tech News

Nvidia credit risk surges amid $750B partnership concerns. KOSPI hits circuit breakers; ASML drops 5.8% on Chinese DUV production news and Kimi K3 open-source release.

Woofun AI reports that global semiconductor assets faced concentrated sell-offs, with the South Korean KOSPI triggering circuit breakers twice and dropping over 10%. NVIDIA shares fell approximately 5%, while its 5-year Credit Default Swap spread widened by 14 basis points to 82 bps, reflecting heightened credit risk concerns regarding its $750 billion AI infrastructure partnerships. ASML declined 5.80% following reports of mass production of domestic immersion DUV lithography equipment in China, alongside Western Digital and SanDisk losses. The sell-off was compounded by the open-sourcing of the Kimi K3 model, which intensified market scrutiny on the capital efficiency of US and Korean tech giants. Macro pressures further weighed on sentiment as the Federal Reserve and Bank of Japan prepared for imminent interest rate decisions, with markets pricing in potential hawkish shifts.