AI bonds could devour credit markets. Let stock investors take the risk.

The AI trade has spread beyond stocks, but bond investors should do what they can to avoid it.

Artificial intelligence has been a winner for equity investors. An equal-weight basket of Amazon.com, Meta Platforms, Oracle, Microsoft, and Alphabet shares—the five main “hyperscalers”—rallied an average of 23% last year, outperforming the S&P 500’s 16% rise. But as the demand for more computing power has risen, so has the need for cash to build out data centers and fill them up with specialized chips, industrial-grade liquid cooling, and networking systems.