Core Viewpoint - Oracle Corp. has a significantly high debt-to-equity ratio of 500%, which is much higher than its peers, indicating potential financial strain and risk associated with its aggressive borrowing strategy for AI investments [1][5]. Debt Analysis - J.P. Morgan's Michael Cembalest highlighted that Oracle's net debt-to-EBITDA ratio is approximately 400%, still placing it as a significant outlier compared to key AI competitors like Google, Amazon, Microsoft, and Nvidia, which cluster near 0% [7][8]. - The original analysis suggested that Oracle's $60 billion commitment to cloud facilities for OpenAI could disrupt the current market dynamics, potentially leading to a "debt-fueled arms race" in the tech sector [6]. Stock Performance - Despite concerns over its debt levels, Oracle's stock has shown strong performance, rallying nearly 70% year-to-date and 63.21% over the year, although it experienced a slight decline recently [10]. Credit and Cash Flow - Oracle remains the most leveraged company among J.P. Morgan's "Direct AI stocks" and has lower free cash flow ratios compared to its peers, indicating a potential challenge in managing its debt levels effectively [9].