US technology companies are experiencing unprecedented profit margins due to advancements in artificial intelligence.
According to reports from The Kobeissi Letter, profit margins for Technology, Media, and Telecom stocks have surged to 24%, doubling from levels seen during the market downturn in 2022.
These numbers are nearly 10 percentage points higher than the sector’s long-term average of around 15%. In contrast, non-technology firms are maintaining margins around 9%, consistent with their historical trends.
The current technology margins are now approximately 2.7 times higher than the rest of the market.
While current levels are below the peak in 2007 before the financial crisis and under the high in 2021, the AI Revolution continues to drive tech profitability.
The Kobeissi Letter also reports that the AI Revolution is leading to a record financing boom in the US.
“US high-grade corporate bond issuance is projected to reach approximately $215 billion in September, marking the largest September issuance on record.”
This surge is expected to surpass the previous September high of around $205 billion set in 2025. The current estimate is more than three times the $70 billion issued in September 2022.
This trend follows the issuance of $145.2 billion in US high-grade bonds in August, the highest August total on record, as AI-related data center expansions drive corporate borrowing.
US companies have already borrowed over $410 billion in 2026 to specifically fund data centers and other AI-related ventures.
Furthermore, retail investors have purchased more investment-grade bonds this year than in any full year since 2010.
The AI boom is fueling a record corporate borrowing spree in the US.
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