Aug. 9 at 1:23 PM
Big Tech’s AI spending is getting expensive, and the credit market is starting to notice.
$ORCL leads the move, with 5Y CDS up ~70 bps YTD to ~215 bps.
$AVGO is next at +48 bps, followed by
$META +39 bps and
$NVDA +32 bps.
$AMZN and GOOGL are also seeing CDS move higher.
At the same time, Big Tech has issued roughly
$200B of bonds this year.
AI may be the biggest growth opportunity in decades, but investors are starting to ask: how much debt is too much?