Treasury Raises Buyback Limits on Long-Term Bonds as AI Infrastructure Spending Reshapes Capital Markets

Treasury Secretary Bessent is raising the buyback limit on 20- and 30-year bonds to ease crowding out driven by record AI-related bond issuance, with the public and private sectors now working in concert to fund the AI arms race. AI stocks were among the top premarket gainers following the Treasury announcement, with the move in yields being broadly attributed to surging AI infrastructure demand. That demand is reshaping multiple sectors simultaneously: Analog Devices issued a fourth-quarter revenue and profit forecast above Wall Street estimates, citing AI-driven demand for its power-management chips in data centers and industrial applications.

Kingsoft's AI cloud billings jumped 82%, sending its stock up more than 11% premarket. Berkshire Hathaway now holds roughly 10% of its $358 billion portfolio in Alphabet, which became its third-largest holding in the second quarter after the stock rose 70% over the past year. Nvidia is acting as matchmaker for Nordic AI data center deals, underscoring its expanding role beyond chip sales.

On the supply side, a bottleneck at Taiwan Semiconductor is being seen as handing Samsung a meaningful pricing opportunity. Arrive AI announced a workforce restructuring it expects to generate approximately $1.5 million in annualized savings, with around 450,000 unvested shares forfeited, as it shifts to a leaner AI-enabled operating model ahead of its own internal schedule. CrowdStrike, up 110% over five months on AI-driven cybersecurity tailwinds, faces a valuation-based analyst downgrade ahead of its second-quarter report despite accelerating net new ARR and expanding module adoption.

Cerebras launched a new server chip and system designed to speed AI chatbots, while copper miners are attracting fresh attention as analysts flag rising metals demand tied to AI data center buildout.