Oracle a ‘Show Me Story’ on Big AI Debt Bet, JPMorgan Says (1)

Oracle Corp.’s aggressive artificial intelligence spending plan has put the cloud computing giant’s corporate bonds under a harsh spotlight as Wall Street searches for cracks in the AI boom.

JPMorgan Chase & Co. credit analyst Erica Spear expects pressures on the company’s bonds will persist in the new year.

Oracle’s stock plunged the most in almost 11 months and a measure of the firm’s credit risk reached a fresh 16-year high last week. Those dismal milestones came in the aftermath of results that showed Oracle falling short of analysts estimates for cloud revenue while boosting its annual capital ...