Castle Securities: It is expected that chip financing will experience a $500 billion debt frenzy in the next three years.

The credit market may have already become satisfied with record borrowing by data centers, but tech companies are not stopping. Castle Securities predicts that by 2028, public and private markets will reissue over $500 billion in debt to finance chips within artificial intelligence campuses. The company's head analyst for investment-grade trading, Jeff Eason, expects that most of the issuances may be short-termaround three to five yearsto match the lifespan of the chips, with some potentially issued in the form of 144A private placements; this could become one of the largest new areas in investment-grade credit, with an influx of supply that may reshape investment-grade credit portfolios.