Citadel Securities Predicts: By 2028, US AI Chip Procurement-Related Debt Financing to Exceed $500 Billion, an Unprecedented Scale
Jeff Eason, head of investment grade credit research at Citadel Securities, warned that this scale is "unprecedented relative to the current market" and could reshape the entire investment grade credit market landscape. Previously, the global credit market had absorbed approximately $570 billion in AI-related debt, primarily for data center expansion, but financing demand from the chip sector is expected to far exceed this amount, with chipmakers' debt issuance potentially surpassing $250 billion in 2028 alone. Eason anticipates that this round of chip financing will primarily involve debt maturities of three to five years, with some potentially issued via 144A private placements.
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