Nvidia’s troubles wiped out $10 billion in Oracle’s market capitalization in a single session, while its shares fell more than 35% year to date. Oracle used its entire $20 billion financing budget through fiscal 2030 in one day by selling $10 billion in shares and $10 billion in bonds. Its borrowing costs deteriorated sharply, with the premium over U.S. Treasuries rising to 2.40 percentage points and its five-year credit default swaps nearing 305 basis points. Facing a possible loss of S&P’s BBB- rating, Oracle is also dealing with risks tied to its artificial-intelligence investments, delays at the Jupiter project in New Mexico and Microsoft’s reduced computing rentals. OpenAI accounts for roughly half of Oracle’s revenue backlog, exposing the company to significant revenue concentration and a possible downgrade to speculative grade.
Source: Read the original article
