Demand for Amazon’s (AMZN) Bond Sale Is Off the Charts, Drawing $126 Billion Interest

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Amazon’s AMZN +0.55% ▲ corporate bond sale has attracted a $126 billion in peak demand, making it one of the biggest corporate debt sales on record.

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The e-commerce giant had targeted $37 billion to $42 billion in this bond sale, the proceeds of which it plans to use to fund its artificial intelligence (AI) expansion. Amazon’s bond sale ranks behind only the $129 billion in orders for Oracle’s ORCL -0.09% ▼ bond sale in February of this year.

Demand for Amazon’s bond offering surpassed the $125 billion seen for Meta Platforms META +1.58% ▲ debt sale held last October. Analysts say the heavy demand reflects investor appetite for hyperscaler debt despite rising uncertainty about AI technologies and the direction of the U.S. economy.

Debt Issuance Among Hyperscalers

Amazon is accessing the U.S. high-grade debt market with an offering that spans as many as 11 tranches, ranging from two to 50 years. The company is also marketing an eight-part bond sale in the European high-grade debt market.

Technology giants such as Amazon are turning to debt markets and issuing bonds as they seek to fund their AI ambitions. The mega-cap hyperscalers that also include Alphabet GOOGL +0.57% ▲ and Microsoft MSFT -0.94% ▼ plan to spend a combined $650 billion on growing their AI technologies in 2026.

Is AMZN Stock a Buy?

AMZN stock has a consensus Strong Buy rating among 43 Wall Street analysts. That rating is based on 40 Buy and three Hold recommendations assigned in the last three months. The average AMZN price target of $279.88 implies 32.95% upside from current levels.

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