Analyst Flags Oracle, CoreWeave as AI Bear-Market Risks, Favors Berkshire With $400 Billion Cash
Updated
Updated · The Motley Fool · Aug 5
Analyst Flags Oracle, CoreWeave as AI Bear-Market Risks, Favors Berkshire With $400 Billion Cash
1 articles · Updated · The Motley Fool · Aug 5
Summary
Oracle and CoreWeave were singled out as the stocks most exposed if an AI-led selloff tips the market into a 20% bear market, while Berkshire Hathaway was named the preferred defensive holding.
Oracle’s risk case centers on leverage and concentration: fiscal 2026 free cash flow was negative $24.5 billion, total debt hit $156 billion, lease commitments reached $261 billion, and about half of its $638 billion backlog is tied to OpenAI.
CoreWeave was portrayed as an even purer AI bet, with revenue more than doubling to $2.08 billion last quarter but total debt nearing $25 billion against just $2.24 billion in cash.
Berkshire’s appeal is its balance sheet rather than AI upside, with nearly $400 billion in cash that could be deployed to buy assets cheaply in a downturn.
The call comes after a sharp market rebound: the S&P 500 has climbed nearly 20% from its spring slump, while the Nasdaq has risen nearly 25% from its April low.