Bloomberg Surveillance · Tuesday, June 30, 2026
Chris Marangi of Gabelli Funds observes that debt from AI hyperscalers is being well-received, drawing parallels to past technology revolutions that span a decade with initial capex investment followed by payback. He notes these companies have pristine balance sheets, making new debt issuance barely noticeable on their leverage metrics.
“Well, so far they've been digested pretty well. I think we've all seen when a new technology revolution comes along, it's not all over in one or two years. It tends to run for a decade, and the first half of that decade is where the kapax gets invested in, the second half is where you get the payback.”
“The hyperscalers have very pristine balance sheets, so the amount of debt that they're adding is hardly noticeable on their leverage metrics.”