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Due to the frequent bond issuances by tech behemoths, which have sparked investors' worries about an artificial intelligence (AI) bubble, the metric gauging Oracle Corporation's debt default risk has soared to its peak since the financial crisis. On Tuesday, Oracle's five-year credit default swap (CDS) climbed to roughly 128.1 basis points, marking a more than threefold increase from its nadir in June this year. In the past few months, Oracle has floated debt worth tens of billions of dollars. The skyrocketing CDS costs are a reflection of the market's apprehensions regarding a possible divergence between investment and returns in the AI sector. Strategists at TD Securities cautioned that the present scenario bears a resemblance to the situation during the internet bubble.
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