WASHINGTON - Wall Street analysts are upgrading debt projections for major AI hyperscalers following Amazon's massive $54 billion bond offering last week. The five major firms-Amazon, Microsoft, Meta, Alphabet, and Oracle-are borrowing heavily to fund exploding data center demands for artificial intelligence.
Bank of America Global Research lifted its 2026 forecast for new hyperscaler debt to $175 billion. JPMorgan noted strong demand for the recent Amazon sale, with orders exceeding supply by nearly four times. Investors view this sector as fertile ground for capital markets.
This surge contributes to expectations that U.S. investment-grade corporate bond issuance could exceed $2 trillion in 2026, potentially surpassing post-pandemic records.