Citadel Securities Sees $500 Billion AI Chip Debt Surge by 2028
Updated
Updated · Yahoo Finance · Aug 3
Citadel Securities Sees $500 Billion AI Chip Debt Surge by 2028
3 articles · Updated · Yahoo Finance · Aug 3
Summary
$500 billion-plus of new debt could hit public and private markets by 2028 as tech companies keep borrowing to fund chips for AI campuses, Citadel Securities said.
Jeff Eason, the firm's head investment-grade desk analyst, said the projected issuance would equal more than 5% of the Bloomberg US high-grade index by 2028.
Most of that borrowing is likely to be shorter-dated—about three to five years—to match chip life spans rather than the longer horizons typical of data-center financing.
Part of the funding could come through 144A private offerings, extending the AI build-out beyond the record borrowing already absorbed by credit markets.