Big tech firms are investing billions in AI, leading to a spending spree on semiconductors, data centers, and software. One tech firm may have taken on too much debt, raising concerns over AI risks in corporate bonds. Despite the spending, most firms have solid balance sheets, with Apple and Oracle standing out for high debt levels.
Debt-to-equity and debt-to-capital ratios show Apple and Oracle have high debt levels, potentially risky for solvency. All big tech firms have investment-grade ratings, except Oracle, which is on a negative watch. Despite debt concerns, AI investments could pay off as demand for AI grows among consumers and businesses.
Read more at Nasdaq: Which Big Tech Stocks Have the Most Debt, and Why It Matters
