Global AI debt issuance to top $500 billion in 2026, Morgan Stanley says

Morgan Stanley forecasts AI-related global debt issuance to more than double ‌to nearly $570 billion in 2026, pointing to ‌rising bond supply and credit market activity as hyperscalers turn ​to alternative funding sources to meet massive AI-driven capex needs.

• Tech companies that have long relied on strong cash flows are ‌increasingly turning to ⁠debt financing as investment needs surge

• Morgan Stanley estimates AI-related global debt issuance ⁠stood at nearly $236 billion as of May 31, 2026, fourfold more than the same period last ​year

• Hyperscalers ​Alphabet, Amazon, Microsoft and ​Meta are expected to ‌spend $700 billion in outlays this year

• Morgan Stanley expects issuance to ramp in second half of 2026, as hyperscaler capex surpasses $1 trillion in 2027

• “Hyperscalers have been broadening their investor base through ‌non-USD issuance,” the brokerage said

• “Fundamental (economic) ​backdrop remains strong, but for ​now we think (bond) ​price action is being mostly driven ‌by supply expectations,” Morgan Stanley ​added

• Financing ​for chip companies, which is seeing an uptick in public and private markets, is shifting ​to shorter-term ‌deals that are fully repaid over time – ​Morgan Stanley