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