Oracle Might Be the Riskiest AI Stock as Bubble Fears Grow
If you had asked me five years ago what could possibly threaten tech giants with massive cash flows and impenetrable economic moats, I would have struggled to come up with an answer. Today, the answer is clear: Debt-fueled overinvestment in AI infrastructure.
There's a gargantuan amount of planned AI data center capacity set to come online over the next few years. Microsoft, Amazon, Meta Platforms, and Alphabet have greatly ramped up their capital spending to capture AI computing demand, and governments around the world are hurling vast sums of capital into AI investments. It's the fear of missing out on an unprecedented scale.
Of all the tech giants jumping headfirst into the AI inferno, Oracle (NYSE: ORCL) is putting itself at the most risk if the AI boom goes sideways.
Source Fool.com
Alphabet Inc. A Stock
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