Home / Business and Economy / Buffett's $400B Stash: AI Bubble Fears Loom
Buffett's $400B Stash: AI Bubble Fears Loom
24 May
Summary
- Berkshire Hathaway holds nearly $400 billion in cash as of Q1 2026.
- Michael Burry warns of an AI bubble, citing Dotcom crash indicators.
- South Korea and Taiwan stock markets surge amid AI boom.
As of the first quarter of 2026, Berkshire Hathaway possesses a record cash pile nearing $400 billion. Warren Buffett has indicated that current market conditions are not ideal for deploying capital, suggesting a belief that a sharper crash may lie ahead.
Michael Burry, renowned for predicting the 2008 housing crisis, continues to express strong concerns about a potential AI bubble. He points to numerous technical and fundamental indicators, likening the current situation to the lead-up to the Dotcom crash.
The global stock market order is being reshaped by the AI boom, with South Korea and Taiwan notably surpassing established Western exchanges. South Korea's Kospi has hit new highs, outperforming the Nasdaq's 1990s run, while Taiwan's market has climbed significantly, driven by AI sector demand and Taiwan Semiconductor Manufacturing Co. (TSMC).
This AI-driven rally has led to a significant concentration of capital in a few AI firms. TSMC alone constitutes over 40% of Taiwan's market capitalization, and Samsung Electronics and SK Hynix together represent a substantial portion of South Korea's Kospi index.
