Raymond James sees AI financing opportunities for Apollo, Owl Rock and Ares

Raymond James said Monday that Apollo Global Management (NYSE:APO), Owl Rock Capital (NYSE:OWL), and Ares Management (NYSE:ARES) are positioned to benefit from opportunities in artificial intelligence financing.

The investment bank shared findings from discussions with credit market professionals. Raymond James said lending capacity remains strong, with increased competition among credit investors over the past year. Software companies viewed as vulnerable to AI disruption continue to successfully refinance their debt.

The firm said debt markets will likely have enough capacity to fund AI infrastructure projects. Credit investors show strong interest in financing data centers with quality tenants. GPU chip financings present more uncertainty due to questions about the lifespan and resale value of current graphics processing units, but Raymond James expects capital will flow to GPUs through various short-term financing structures.

Raymond James said Apollo Global Management will likely play a significant role in the GPU financing market, with terms that should offer attractive risk-adjusted returns despite uncertainty around residual values. Owl Rock Capital and Ares Management are established data center investors at a time when track records and operating capabilities are gaining importance.

All three firms should benefit from continued strong demand for credit investments and solid performance, according to Raymond James.