Goldman Sachs Asset Management believes that as a large volume of new debt floods the market, the firm is currently underweight on the companies with the largest AI-related borrowing, and expects hyperscale cloud service providers to continue issuing substantial amounts of debt.

Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management, said in a media interview on Thursday: "We think hyperscale cloud service providers will issue a lot of bonds. We are overall underweight on this sector because we know there will be more bond supply."

Major technology companies have been among the largest issuers in the U.S. investment-grade corporate bond market this year. Companies including Amazon, Meta, and Alphabet have borrowed hundreds of billions of dollars for AI projects.

Rosner said: "This situation has persisted throughout the year, with newly issued bonds replacing existing ones."

Rosner stated that the underweight position is primarily due to expectations that bond supply will remain elevated, rather than pessimism about the AI outlook. She said her team remains bullish on the "AI narrative," but also recognizes that increased bond issuance could prompt market repricing.