AI Spending Fuels Record Tech Bond Issuance

JPMorgan has increased its forecast for technology sector bond issuance this year to $540 billion, as AI spending continues to fuel the growth of hyperscalers and chipmakers.

The bank's strategists point out that this figure is significantly higher than their previous estimate of $450 billion, underscoring the extent to which the AI investment cycle is driving corporate borrowing.

Hyperscaler debt alone is expected to reach $317 billion in 2026, with data center project financing adding another $85 billion. However, this figure could easily exceed $100 billion if most projects in the pipeline materialize.

JPMorgan has identified seven investment-grade data center financing opportunities beyond the six that have been funded to date, with four of those expected to come from Oracle Corp and OpenAI.