Oracle Bonds Slide as Heavy AI Spending Raises Investor Concerns About Near-Term Profitability

Oracle’s corporate bonds faced selling pressure in the latest session as investors reacted to rising concerns about the company’s accelerating AI-related capital expenditure. The firm’s AI investments have grown larger than its operating earnings, prompting questions about the impact on short-term profitability and cash flows. Traders noted increased risk premiums on certain Oracle bond maturities, reflecting cautious sentiment toward debt-linked exposure. While Oracle remains committed to expanding cloud and AI infrastructure, market participants are evaluating whether the expenditure pace can support returns quickly enough amid intensifying competition from hyperscalers.