Oracle Might Be the Riskiest AI Stock as Bubble Fears Grow

The once‑hopeful AI push at Oracle is raising alarm bells, with growing sentiment that the company may be one of the most vulnerable in the current AI frenzy. Oracle has committed to massive AI infrastructure build‑outs — including a landmark multi‑year deal with OpenAI — but it’s financing this push with towering debt. The company’s own projections suggest its AI infrastructure business will run at adjusted gross margins between 30 % and 40 %, significantly below the healthier 40 %–60 % margins typical of cloud infrastructure peers. At the same time, Oracle’s stock has tumbled — down roughly 40 % from its September peak — as investors increasingly question whether demand and profitability will materialize. Meanwhile, its cash flow has turned negative after years of heavy capital expenditures, and its debt load has soared past $100 billion when including bond and lease liabilities. If public sentiment toward AI sours or if OpenAI (or other major clients) fail to ramp usage, Oracle could be left with costly, under‑utilized infrastructure — a danger critics warn might make Oracle the poster child of a bursting AI bubble. #Oracle #AIbubble #TechStocks #InvestingRisks #SlimScan #GrowthStocks #CANSLIM