Bank of America says big tech bonds offer more opportunity than stocks

Michael Hartnett argues AI spending has pushed hyperscaler bond yields high enough to beat the equity story The most interesting trade in big tech right now might not involve buying a single share. According to Bank of America’s Michael Hartnett, the better opportunity sits in the debt that mega-cap tech companies are issuing to pay for artificial intelligence. The reason is simple. Investors have grown nervous about how much these firms are borrowing for the AI buildout, and that nervousness has pushed yields up. Even investment-grade hyperscalers are now paying as much as 8%. What Hartnett is actually saying Hartnett, Bank of America’s chief investment strategist, laid out the case in the firm’s Flow Show weekly note. The research behind it is dated October 29, 2026. His core point: long-duration bonds from companies like Oracle, Meta, and Alphabet now yield somewhere between 6% and 8%. That range, he argues, makes them more attractive than the same companies’ stocks. The individual figures are striking. Oracle bonds were reported at 8.4%, Meta at 7.5%, and Google at 6.9%. That is exactly what has happened. US investment-grade tech bonds have seen prices drop approximately 9% yea...