This article first appeared on GuruFocus.

Oracle (ORCL, Financials) saw its credit rating cut to Neutral by JPMorgan, as analysts raised concerns about the company's heavy spending to expand its artificial intelligence infrastructure.

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The bank said Oracle's plans to build out massive cloud and AI data centers will require disciplined financing and careful balance sheet management.The corporation aims to spend more than $35 billion on capital this year, which shows that investment is going up quickly.

Oracle has been trying to make itself a major participant in the AI infrastructure market so that it can compete more directly with Amazon Web Services, Microsoft Azure, and Google Cloud. But analysts at JPMorgan noted that the company's current rate of growth creates \\"execution risk\\" and doesn't offer much potential for improvement in its credit spread performance in the near future.

Despite the downgrade, Oracle continues to trade at wider spreads than many of its technology peers. JPMorgan said it expects investors to remain cautious until management provides more clarity on how the company plans to finance its long-term AI buildout.

Following downgrade, Oracle trades wider than other tech peers.JPMorgan expects investors to be cautious until management confirms long-term AI buildout finance.