J.P. Morgan raises its forecast for tech bond issuance, expecting the scale of bond issuance to exceed $500 billion this year.

JPMorgan expects that the issuance of bonds by technology-related companies will exceed $500 billion this year. The bank has raised its forecast for debt issuance in the technology, media, and telecommunications sectors in 2026 from the previous $450 billion to $540 billion, citing that increased spending by large tech companies is leading the investment cycle in artificial intelligence. A team led by JPMorgan strategist Erika Spill stated in a report on Friday that chip-supported financing will become the "next major frontier" supporting AI infrastructure development, potentially "growing to several trillion dollars" by the end of this decade. JPMorgan has identified seven investment-grade data center financing opportunities in addition to six projects that have already been financed, four of which are expected to come from Oracle and OpenAI. The bank anticipates that Meta Platforms will return to the bond market following the announcement of its third-quarter financial results, while Microsoft is viewed as the "largest uncertainty," possibly seeking bond financing for the first time since 2017.