oracle default risk: orcl stock analysis: Oracle default fears explode as Credit Default Swap hits crisis-level highs amid AI bubble panic
Oracle’s default risk is rising fast. The tech giant’s 5-year Credit Default Swap has jumped to 128 basis points, the highest level since the 2008 financial crisis. Traders are now aggressively buying protection against a potential Oracle debt default. The surge comes as Wall Street grows uneasy about AI-driven debt expansion and fading confidence in future returns.
The fears hit as Oracle stock remains down 46% in three months, even after a historic rally earlier this year. The selloff has intensified concerns that the AI boom may be stalling, leaving highly leveraged tech firms exposed to sharper volatility.
Oracle’s CDS spike to 128 basis points stems primarily from its aggressive AI infrastructure borrowing, projecting net debt…
