Hyperscalers: Too wide to ignore, too much supply to chase: Valuations at new wides look attractive, but we think heavy issuance, adjacent data center/chip supply, and rising concentration risk argue against chasing here.

Research evidence excerpt

Hyperscalers: Too wide to ignore, too much supply to chase: Valuations at new wides look attractive, but we think heavy issuance, adjacent data center/chip supply, and rising concentration risk argue against chasing here.

FICC Research

Credit Research

16 July 2026

US Investment Grade

Hyperscalers: Too wide to ignore, SIGNATURE

too much supply to chase

Valuations at new wides look attractive, but we think heavy Dominique Toublan

issuance, adjacent data center/chip supply, and rising +1 212 412 3841

dominique.toublan@barclays.com

concentration risk argue against chasing here. BCI, US

Andrew Keches, CFA

+1 212 412 5248

andrew.keches@barclays.com

We appreciate your 5-Star vote in the 2026 Extel Global Fixed-Income Research BCI, US

Survey in the USA: Economics & Strategy – Investment Grade, and IG Technology,

Remy Neuhaus

Media & Entertainment, Telecommunications Services, and Retailing categories.

+1 212 526 6840

View our analysts » Vote 5 Stars for Barclays » remy.neuhaus@barclays.com

BCI, US

Hyperscalers are nearing an inflection point in IG. Rapidly rising index

concentration is colliding with weaker deal subscriptions, larger new issue Priya Ohri-Gupta, CFA

concessions and a growing pipeline of AI-related supply. They now contribute more +1 212 412 3759

priya.ohrigupta@barclays.com index DTS than the Big 6, making their footprint in IG risk materially larger than their

market weight suggests.

Spreads are now quite wide for the rating, making the sector increasingly

difficult to ignore. But attractive unsecured valuations must be weighed against a

widening menu of higher-spread alternatives, and additional corporate supply could

also keep curves under pressure.

We downgrade the US HG Technology sector to Underweight from Market

Weight.