Home / Business and Economy / Buffett Dumps Apple Stock Amid AI Bubble Fears
Buffett Dumps Apple Stock Amid AI Bubble Fears
26 Nov
Summary
- Berkshire Hathaway reduced its Apple stake by 15% in Q3.
- Apple's market cap stands at $4.01 trillion, second largest.
- AAPL shares gained 9% year-to-date despite AI sector concerns.
Wall Street is increasingly voicing concerns about an impending AI bubble, with many tech valuations reaching extreme levels and AI-exposed stocks experiencing declines. Amid this cautious market sentiment, Warren Buffett's Berkshire Hathaway has reduced its substantial Apple stake by approximately 15% during the third quarter. This strategic move, detailed in Berkshire's latest 13F filing, has drawn significant attention given Apple's historical prominence within the firm's portfolio.
Apple, a titan founded in 1976, boasts a market capitalization of $4.01 trillion, solidifying its position as the second-largest company globally. Its product ecosystem, including the iPhone and Services business, remains robust. Notably, AAPL shares have appreciated by 9% year-to-date, demonstrating a degree of resilience against broader tech sector volatility.
While Apple shares faced headwinds earlier in the year, they broke a sideways trading range in August, driven by strong iPhone demand. The company's seemingly modest investment in AI initiatives appears to be shielding it from the widespread sell-off affecting other AI-related stocks. Berkshire's decision to trim its position is seen as a move to free up cash and reallocate capital to other ventures.
