AI companies convertible bonds: How AI companies are driving a record $13.6 billion convertible bond surge in the US
AI-Focused Companies Raise Convertible Bond Raise in Early 2026
Through Feb. 18, 18 firms had raised about $13.6 billion in stock-linked securities, according to Bloomberg data; This represents a 556% increase compared to the same period in 2025. Last year, convertible bond issuance reached an all-time high of $120 billion.
“It’s possible we could have the same or more activity than last year, and roughly 50% AI-related could be true if you include energy and utilities,” Jan Debeuckelaer, Goldman Sachs’ head of U.S. equity-related capital markets, said, as quoted by Bloomberg.
Why Do Growth Companies Choose Convertible Bonds for Financing?
Convertible bonds remain attractive to growth companies because they offer low-cost financing with the potential to convert into equity.
How Does Market Volatility Benefit Convertible Bond Investors?
“Volatility is really beneficial for convertible investors,” Bloomberg quoted Jason Wood, founder of J. Wood Capital Advisors, as saying. If stock prices fluctuate sharply, companies may sell their bonds with low or zero coupons, the report said. For example, Microchip Technology recently issued zero-coupon convertible bonds that beat expectations with a 40% conversion premium.
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Healthcare and Recent IPOs May Boost Convertible Bond Market
Despite some turmoil in software and neocloud stocks, market experts remain optimistic. Goldman Sachs’ Michael Voris highlighted a broader capital investment cycle across the U.S. Wood noted that sectors such as healthcare and recent IPOs could see an increase in convertible bond issuance. “The last few years have been very light for healthcare issuance because healthcare companies didn’t like their stock prices or valuations,” Wood said, according to Bloomberg. “But the recovery in the sector at the end of last year attracted more interest from issuers,” Wood said, as quoted by Bloomberg.
Oracle’s $5 Billion Bond Showcases AI-Focused Capital Strategy
Oracle’s $5 billion mandatory convertible bond earlier this month demonstrates how companies are leveraging these tools to support their AI spending and credit strategies.
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FAQ
Why is the US convertible bond market booming in 2026?
AI-focused companies are helping the market start strong by achieving record issuances at the beginning of the year.
How much has been raised so far this year?
The 18 companies have raised nearly $13.6 billion through February 18, up 556% from 2025.
