Oracle's Massive Debt Problem
Key Points
Oracle has a huge backlog of revenue from OpenAI, but it's going to cost the company hundreds of billions to deliver the chips they need.
After spending a decade buying back shares, Oracle is now raising cash via equity and debt.
With debt already at $120 billion and rising the risk is enormous for Oracle.
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Oracle (NYSE: ORCL) is compounding its debt issues by announcing another $40 billion in financing needs to build out AI infrastructure. Half of those funds will come from debt, which is already crushing at $120 billion.
On the surface, this makes sense given the remaining performance obligations, but I highlight in this video why this is a risk management may not be able to overcome if AI doesn't have an extraordinary payback.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
*Stock prices used were end-of-day prices of June 15, 2026. The video was published on June 16, 2026.
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Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
