Foreign investors swap US Treasuries for Big Tech as AI boom reshapes capital flows

Capital flight from sovereign debt to equities intensifies pressure on the US external deficit, even as tech giants tap global bond markets to fund AI infrastructure.

By Handelsavisen Newsroom · Automated 2026-07-27 03:07 UTC · 1 min read

Foreign capital is accelerating its shift away from US federal debt and into large-cap technology stocks, driven by the artificial intelligence investment cycle.

This reallocation is deepening the spotlight on America’s persistent external deficit, raising questions about the sustainability of the current financing model.

The share of publicly held US federal debt owned by foreign investors has declined to 30%, down from 50% in 2012.

The share of publicly held US federal debt owned by foreign investors has declined to 30%, down from 50% in 2012.

As overseas buyers reduce their exposure to Treasuries, they are increasingly channeling funds into Wall Street’s tech sector, attracted by the growth prospects of AI-driven companies.

This dynamic creates a complex financing environment for US technology firms.

While equity inflows support valuations, major tech companies are simultaneously turning to international bond markets to raise capital for their rapid expansion of AI infrastructure.