By Timothy Green
Publication Date: 2025-11-30 12:50:00
The software giant already has a mountain of debt.
If you had asked me five years ago what could threaten tech giants with massive cash flows and impenetrable economic moats, I would have been hard-pressed to answer. Today the answer is clear: Debt driven Overinvestment in AI infrastructure.
A gigantic amount of AI data center capacity is planned to come online in the next few years. Microsoft, Amazon, MetaplatformsAnd alphabet have significantly increased their capital expenditures to meet the demand for AI computing, and governments around the world are pouring huge amounts of capital into AI investments. It is the fear of missing out on an unprecedented scale.
Of all the tech giants rushing headfirst into the AI inferno, oracle (ORCL 1.52%) faces the greatest risk if the AI boom stagnates.
Image source: Getty Images.
Oracle already has a lot of debt
Oracle issued billion dollars buy back own shares a strategy over the last decade…
