Buffett Just Plowed $435,600,000 Into THIS Energy Stock... 50% of AI Stocks Are Dying (Like A Dog)?

I know why you’re here.

Even though the stock market hit the snooze button today, you can’t stay away.

It’s like the headache you get when you take a break from coffee.

Well guess what?

I’ve got you covered, I’m gonna get you that fix, just stay with me.

In today’s issue we’re going to cover… why 50% of AI stocks are down-bad (like tremendously) in the midst of this AI rally…

And why Warren Buff-Daddy just piled $435,600,000 into a single position.

So let’s get started.

Report: Over 50% of AI Stocks Are Dying (Like A Dog)

Well folks, it looks like just sprinkling "AI" like it's magic fairy dust won't cut it anymore. According to Stuart Kaiser from Citi, investors are no longer dazzled by the mere mention of artificial intelligence.

Remember last year's AI frenzy? Stocks soared, and it seemed like everyone was riding high on the AI wave. But this year, reality is setting in. Many of those same stocks have taken a nosedive. Investors are getting smarter, asking for proof instead of promises. Seems like folks have learned a thing or two from recent history.

Take Nvidia, for example. It’s still riding the AI rocket, now the most valuable public company in the world. But the hype has sparked a debate: is the stock market running on pure speculation?

"AI is still a big deal, but you need to show the money," says Kaiser. About 60% of the S&P 500 stocks have risen this year, but in Citi's "AI Winners Basket," over half have dipped. Last year, more than 75% were climbing. So, what gives?

Mona Mahajan from Edward Jones says investors are digging deeper into earnings. Companies like Nvidia that show real profits are still in the game. But those that can’t back up their AI claims? They’re feeling the burn.

Then there’s the issue of AI "hallucinations." These systems sometimes spit out confident, yet completely wrong answers. It’s like asking your phone for directions and ending up in a cornfield instead of a coffee shop. Or who can forget that episode in the office where Michael Scott’s GPS drove him into a “f***ing lake.

Kelwin Fernandes from NILG.AI explains that these AI models predict words based on probability, not facts. If their training data is off or they misinterpret a question, they can produce bizarrely inaccurate responses. Tsung-Hsien Wen from PolyAI adds that while AI is advancing quickly, there’s still a risk of totally incorrect outcomes.

So, if you're betting on AI, make sure you’re backing the right horse. Just because a company claims to be an AI player doesn’t mean it's any more legit than that anon X account who claims to make $1 million a month in passive income… Investors are done with the AI fairy tales—they want hard evidence and real results.

Buffett Just Plowed $435,600,000 Into This Energy Company

Warren Buffett, the legendary sage of Omaha who treats Big Macs and Coke like they're the holy grail of dining, is once again making waves in the stock market. Berkshire Hathaway, his economic powerhouse, recently announced it's gone gaga for Occidental Petroleum (NYSE: OXY). Over the span of just two weeks, Buffett scooped up a whopping 7.26 million shares of this oil giant at around $60 a pop. That's no small fry; it's a full-on Texas-sized helping of confidence in the fossil fuel realm.

Now, Buffett isn't just dipping his toes in this oily pond. Oh no, he's practically got a barge floating out there. With a portfolio now bulging to the tune of 255.28 million shares valued at $15.28 billion, Occidental Petroleum has become one of his top holdings. It's like he's building a skyscraper of shares, stacking them high and mighty in his financial cityscape.

But wait, there's more! Berkshire also snagged warrants to grab another 83.9 million shares if the price is right. That's like having a coupon for a Black Friday sale but for oil stocks. You can almost hear Buffett chuckling, "Why buy one when you can potentially buy a boatload more?"

Buffett's bullish move comes amid Occidental's pivot towards cleaner energy solutions, which caught his eye faster than you can say "Vicki Hollub's doing what with lithium now?" Hollub, the CEO driving this oil machine, seems to have Buffett nodding approvingly from his office chair. He's not just seeing oil; he's seeing potential, albeit with a hint of that classic Buffett skepticism about where oil prices might wander.

Sure, Occidental's stock hasn't exactly been the life of the market party lately, dancing down about 5% last year. But Buffett's not sweating it. He's seen worse dips, like when he tried to buy up a chunk of America's farms with a stack of poker chips. That didn't pan out, but this? This could be different.

As Buffett famously quipped, "Predicting oil prices is like betting on a horse race where the track is underwater." Maybe Warren's on Wall Street Bets after all, or maybe he's just got a sixth sense for spotting undervalued stocks. Either way, he's all in on this stock.

Stock.News does not have positions in companies mentioned.