The Zhitong Finance App learned that Alphabet (GOOGL.US) has launched its first Hong Kong dollar and Singapore dollar bond issuance roadshow to test investors' subscription interests at a time when companies focusing on artificial intelligence (AI) face increased market volatility.
According to a source familiar with the matter, Alphabet's initial price guidelines for the planned 2-year, 5-year and 10-year Hong Kong dollar bonds are around 4.6%, 5%, and 5.5%, respectively. The source said that the company is also promoting 2-year, 5-year, 10-year and 30-year bonds denominated in Singapore dollars, with initial price guidelines of around 2.75%, 3.25%, 3.65%, and 4%, respectively.
Earlier reports indicated that Alphabet plans to issue Hong Kong dollar bonds worth 1 billion to 1.5 billion US dollars, and Singapore dollar bonds worth about 1.5 billion US dollars. The funds from this offering will be used for general corporate purposes, which may include repayment of unmatured debts. The person familiar with the matter said that this batch of bonds may be priced as early as Thursday.
The deal comes at a time when technology sector borrowers are facing serious challenges. After the Democratic Party's overall victory in the US midterm elections, the market feared that tightening regulations might slow down infrastructure construction such as AI data centers. This concern led to an extensive sell-off of AI-related stocks last week, and investors have become more cautious as a result.
However, the strong third-quarter results of the new cloud vendor CoreWeave (CRWV.US) boosted investors' enthusiasm for artificial intelligence (AI) trading and prompted US technology stocks to fight back on Wednesday. On November 11, the NASDAQ closed up 1.60%; the Philadelphia Semiconductor Index surged 5.66%, quietly recovering all the decline since it plummeted 12% on November 5.
However, the continued fermentation of the Nvidia (NVDA.US) storm continues to affect market nerves, putting renewed pressure on AI trading and technology stocks. Three days after posting an article admitting her extramarital affair on November 8, Hwang In-hoon was revealed to have a second extramarital relationship. The woman was Nvidia's vice president who reported her work directly to her. Meanwhile, according to media reports citing people familiar with the matter, Nvidia's board of directors is intensively preparing to dismiss Wong In-hoon. The board of directors will decide where to stay as soon as November 12, and has cooperated with external headhunters to find a successor and consider appointing an interim CEO to transition first.
Well-known technology stock analyst Dan Ives believes that if Huang Renxun leaves the CEO position, Nvidia's stock price may drop 25% to 30%, and the corresponding stock price may even fall to around $122. Meanwhile, Jay Goldberg, an analyst who has been cautious about Nvidia for a long time and is one of the few Wall Street analysts to give a “sell” rating, said that if current pressure eventually causes Wong In-hoon to leave office, it could be a serious mistake for Nvidia and all parties involved. As the core target in the AI industry chain, if Nvidia's stock price falls sharply, it will undoubtedly spread to the wider AI sector, once again overshadowing the prospects for AI transactions.
Multi-currency financing has become a new choice for tech giants
The world's largest cloud computing service providers, including Alphabet, Microsoft (MSFT.US), Amazon (AMZN.US), and Meta Platforms (META.US), are borrowing and financing at an unprecedented speed while promising tens of billions of dollars to build AI capabilities. As the construction of data centers, AI chips and cloud computing infrastructure continues to accelerate, technology giants' demand for capital continues to increase, and the bond market has become an important channel for them to raise long-term capital.
As they seek to raise more capital for AI projects, large cloud computing service providers are expanding debt financing channels to target markets they have never entered before. In August of this year, Alphabet first issued Australian dollar bonds. Additionally, the company issued Swiss franc, pound, Canadian dollar, and yen denominated bonds this year.
Technology giants expand the scale of multi-currency financing. On the one hand, it helps broaden the investor base and access funding sources in different regions. On the other hand, it can also diversify financing dependence on the single bond market and prevent large-scale issuance of US dollar bonds from further increasing market supply pressure. Previously, as AI infrastructure investment drove a surge in corporate debt financing needs, technology companies have begun to make more use of markets such as Europe, Canada, and Asia to raise capital.
Just last week, Alphabet raised 6 billion euros (about 6.7 billion US dollars) through a single Eurobond issued over multiple terms. This is the second time this year that the company has issued Eurobonds. The bond is divided into seven maturity levels, ranging from 2 to 19 years. Investors' subscription requirements exceed 17 billion euros, indicating that the market still has some interest in Alphabet bonds.
However, as market concerns about the growth rate of AI spending and the return on investment heat up, the financing costs paid by Alphabet for the second time this year were significantly higher than when the company first issued Eurobonds in May this year. This shows that even high-credit-rated tech giants like Alphabet need to provide investors with more attractive financing conditions against the backdrop of rising AI capital expenditure and increasing bond supply.
AI capital expenditure surges, and the bond market faces supply pressure
Tech giants such as Alphabet continue to increase debt financing, which is closely related to the rapid expansion of their AI infrastructure investments. Alphabet previously predicted that capital expenditure could reach up to US$205 billion in 2026, mainly for data centers and other AI infrastructure construction. Furthermore, by the end of September 2026, the company had signed but had not yet begun implementing leasing agreements such as data centers, etc., and future payments reached US$13.5 billion. This part of the commitment has not yet been included in the balance sheet.
Looking at the industry as a whole, AI infrastructure construction is driving large technology companies into a new round of financing cycle. According to the media's previous analysis of market data, as of the beginning of July 2026, the total amount of bonds issued by Amazon, Alphabet, Meta, and Oracle (ORCL.US) this year has reached about US$194 billion, an increase of 79% over the scale of about US$108 billion for the full year of 2025. Goldman Sachs expects the five major cloud computing service providers, including Microsoft, to issue bonds of about 250 billion US dollars in 2026, and further rise to about 400 billion US dollars in 2027.
As the supply of bonds increased, investors' attitudes towards tech companies' debt also began to change. The market not only pays attention to issuers' credit quality, but also places more emphasis on whether AI infrastructure investments can bring sufficient returns on revenue and cash flow. For investors, the larger the scale of AI spending, the more attention the future financing costs and debt repayment pressure companies will have to bear.
For bond investors, the current core issue is not only whether tech giants can continue to obtain financing, but whether their huge AI capital expenses can eventually be converted into sufficient commercial returns. If commercialization of AI applications falls short of expectations, or if companies are unable to cover rising infrastructure investment through additional revenue, rising financing costs and pressure on cash flow may further affect the market's risk assessment of related corporate debt.
Therefore, Alphabet's issuance of Hong Kong dollar and Singapore dollar bonds is not only another step to expand financing channels in Asia, but will also be an important window for observing the attitudes of global investors on AI financing needs and solvency of large technology companies.