By Vince Condarcuri
Publication Date: 2025-11-21 18:46:00
Goldman Sachs (GS) Partner John Flood says if the AI If this trend continues to shape the stock market, investors may need to focus more on tech giant Oracle (ORCL) instead of chip manufacturer Nvidia (NVDA). Flood explained that Oracle’s credit default swap (the cost of hedging the company’s debt) prices had tripled. This surge has made Oracle a key indicator of AI-related risks by attracting traders seeking protection.
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Flood added that credit concerns are increasing for large cloud companies, so-called hyperscalers. These companies are spending a lot of money on data centers and their capital expenditures are starting to outpace their cash flow, which could lead them to take on even more debt. After Thursday’s drastic market turnaround, investors are now looking to reduce crowded trading and protect their profits before the end of the year. Therefore, this cautious approach reflects a defensive mindset rather than panic.
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