AI Giants Reveal $1.65 Trillion Hidden Debt as Chip Stocks Rebound
Updated
Updated · Semafor · Jul 21
AI Giants Reveal $1.65 Trillion Hidden Debt as Chip Stocks Rebound
2 articles · Updated · Semafor · Jul 21
Summary
$1.65 trillion in off-balance-sheet debt at Alphabet, Amazon, Meta, Microsoft and Oracle is drawing fresh market scrutiny even as tech shares recover from recent AI-bubble fears.
Nikkei said the hidden obligations have grown eightfold in four years as the companies race to build data centers, with investors now weighing whether future earnings can cover the buildup.
Morgan Stanley and Moody’s have also flagged the debt issue, reinforcing concern that AI spending is making risk harder to judge.
Samsung and TSMC led the rebound from comparative lows, while tech-heavy benchmarks in South Korea, Taiwan and China rose on bets semiconductor demand will keep expanding.