Tech giants are aggressively selling stock, raising billions, signaling a potential spending spree. While this boosts balance sheets, it also suggests increased borrowing and capital expenditure, particularly for AI infrastructure. Investors are wary, as recent bond performance indicates concerns about future debt burdens and the sustainability of these massive investments in a historically volatile industry.

"This volatility is, in our view, evidence of excessive froth and calls into the question the sustainability of this rally."

Alphabet's $85 billion equity raise and $159 billion in Big Tech bond issuance in 2026 are straining capital markets as AI spending demands escalate.

Tech giants are aggressively selling stock, raising billions, signaling a potential spending spree. While this boosts balance sheets, it also suggests increased borrowing and…