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2026-10-31 00:16:25
Concerns about the AI funding boom have recently reached new highs, with debt default protection costs for tech companies like Intel and Amazon rising sharply. The default protection costs for several leading US tech giants hit record highs on Friday. Weaker-than-expected quarterly earnings reports from Intel and Amazon further amplified market concerns about whether this wave of AI funding can ultimately deliver reasonable returns. According to statistics released by ICE Data Services, the default protection cost for Intel's five-year bonds surged by 22.4 basis points in early trading on Friday, reaching 127.9 basis points per annum, marking the highest single-day increase and absolute value on record. Broadcom's default protection cost also hit a record high, while AMD's related metrics climbed to their highest level since the beginning of 2019. Amazon's five-year bond default protection cost also reached a record high, rising by 6.9 basis points to 94 basis points per annum during the session. This followed the company's disclosure that quarterly capital expenditures exceeded market expectations, while its core e-commerce business growth hit its lowest level in nearly three years. In addition, risk metrics for other hyperscale cloud service providers such as Microsoft, Alphabet, and SpaceX also hit record highs in early trading on Friday.
