Buffett Warns of U.S. Stock Speculation as AI and IPOs Fuel Gambling Craze

The U.S. stock market has long been a cornerstone of global corporate financing and long-term investment. In recent years, however, the spread of internet technology and social media, coupled with soaring AI stocks, has gradually shifted the market from rational investing toward short-term speculation. The trend is a warning for global investors: excessive speculation could inflate asset bubbles whose collapse would threaten global financial stability and make reasonably valued assets harder for fundamentals-driven investors to find.

In a May 2026 CNBC interview, Berkshire Hathaway Chairman Warren Buffett sharply criticized the U.S. stock market as a “church with a casino attached.” He said the prevalence of short-term speculation and derivatives such as same-day-expiry options amounted to gambling. With few attractive investments available, Berkshire held a record $397 billion in cash as of early 2026. Buffett urged investors to return to value investing.