Oracle’s rising debt costs and CDS spreads indicate increased risk in the market, contrasting with financially stronger AI investments in Microsoft and Alphabet. Concerns arise from Oracle’s $300B OpenAI deal, impacting future profitability. The bond market reveals Oracle’s declining stock price and higher borrowing costs, while Microsoft and Alphabet maintain robust free cash flow. Credit default swap spreads for Oracle have surged, reflecting growing default risk. Investors are cautious about Oracle’s business strategy and OpenAI deal, favoring Microsoft and Alphabet for AI investments due to their proven profitability and strong financial positions.

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