Nvidia Shares Fall Nearly 5% to $196.51, Five-Year CDS Spread Widens to 0.82%

Nvidia shares fell nearly 5% on July 27, closing at $196.51. The company's five-year credit default swap (CDS) spread rose 14 basis points to 0.82%, the largest single-day intraday increase since November 2025.

A CDS can be understood as 'default insurance' for bonds. The higher the CDS spread, the higher the cost investors must pay for default protection. At the 0.82% quote, the annual premium for default protection on $10 million of Nvidia debt would be about $82,000. The widening spread indicates a change in the market's assessment of the company's credit risk.