Wall Street is concerned about a potential AI bubble, with tech valuations at extremes and AI-exposed stocks stumbling. Warren Buffett trimmed Berkshire Hathaway’s Apple position by 15%, which previously made up over half of the portfolio. Investors are questioning if AI enthusiasm has gone too far.

Apple, founded in 1976, is a tech giant with a market cap of $4.01 trillion, the second-largest globally. Shares have risen 9% YTD, supported by strong iPhone demand despite initial AI strategy doubts. Apple’s modest AI spending shields it from tech sector selloffs.

Berkshire Hathaway continues to reduce its Apple stake, selling 15% in the third quarter. Other holdings were trimmed to invest in Alphabet. Despite the reduction, Apple remains Berkshire’s largest holding at 22.7% of the portfolio. Berkshire’s move is seen as a value play by analysts.

Concerns over AI spending and tech valuations persist, impacting major tech stocks. Apple’s modest AI investment shields it from the tech selloff. Apple and Alphabet are the only Magnificent Seven stocks to gain in November, indicating resilience to potential AI bubble deflation.

Apple’s fiscal Q4 revenue rose 7.9% YoY to $102.47 billion, beating estimates but showing slower growth. iPhone revenue grew 6.1% to $49 billion, services revenue hit a new high, and Mac and wearables segments outperformed. Apple expects growth to return in China this quarter.

Analysts expect Apple’s total sales to grow 10-12% in the December quarter, exceeding projections. The company anticipates $1.4 billion in tariff costs for the current quarter. Analysts remain bullish on AAPL stock, with a consensus of “Moderate Buy” and a mean price target of $285.29.

Despite Buffett trimming Apple stock, investors should consider holding. Apple’s potential as a safe haven post-AI bubble, strong sales in China, and positive analyst outlook suggest AAPL’s resilience. Buffett’s move seems more of a value play, and Apple remains Berkshire’s top holding.

Read more at Yahoo Finance: As Wall Street Sounds the Alarm on an AI Bubble, Warren Buffett Is Selling Apple Stock. Should You?