Analysis: US Tech Giants Expected to Maintain Existing AI Investment Plans in the Short Term

Odaily reports: The Democratic Party's clear victory in the elections has led the market to expect that the US may strengthen regulation of the artificial intelligence (AI) industry and data center construction. However, Michael Krautwurst, economist and portfolio manager at ICM Investment Bank, said in a report that the likelihood of a genuine shift in the direction of US AI policy appears low, and therefore hyperscalers are expected to stick with their existing investment plans for the time being.

Krautwurst noted that hyperscalers are a significant source of long-dated bond supply. Driven by this issuance trend, US tech giants have become a distinct issuer group in the investment-grade bond market over the past two years. For this group, the traditional market correlation between credit ratings and bond spreads applies only to a limited extent. (Sina Finance)