Morgan Stanley Poised for Advisory and Underwriting Gains on AI's $700B Capex
Major tech firms announced $700 billion in AI capital expenditures for 2026, up 70% year-over-year, driving record U.S. corporate bond issuance that reached $121 billion in 2025. Morgan Stanley’s advisory and debt underwriting revenues are set to rise as clients tap bond markets to fund the AI buildout.
1. AI Spending Surge
Major tech companies have committed over $700 billion to AI projects in 2026, representing a 70% increase versus 2025. This unprecedented capital outlay underscores the intensity of the AI buildout and its reliance on external financing.
2. Bond Markets Expand
Hyperscale AI firms issued $121 billion in U.S. corporate bonds in 2025, up from an average of $28 billion annually over the prior five years. Forecasts for 2026 range between $175 billion and $300 billion, highlighting potential for continued market growth.
3. Morgan Stanley's Role
Morgan Stanley is tapped to underwrite, advise and trade a significant portion of these AI-driven bond offerings. The firm’s advisory and debt underwriting fee pools are expected to grow sharply as corporations increasingly rely on bond markets to fund AI investments.