Ray Dalio's Bridgewater fund holds six major AI stocks despite his warning of an AI bubble forming

Dalio told Bloomberg Television that AI is showing typical signs of a bubble, as companies face pressure to choose between overspending on the technology and risking underinvestment. He cautioned that while AI may transform the world, investing in AI companies does not guarantee stock returns, as prices can become expensive.

Dalio's top six holdings at the end of Q1 are split between cloud providers (Amazon, Alphabet, Microsoft) and hardware makers (Nvidia, Broadcom, Micron). He increased stakes across all six: more than doubling Amazon to 4.1% of his portfolio, raising Alphabet by 50%, boosting Microsoft by 10%, adding 20% to Nvidia, increasing Broadcom by more than 50%, and raising Micron by 65%.

The three cloud providers are set to spend $580 billion in capital expenditures this year mostly on AI infrastructure. Broadcom expects its custom AI chip and data center networking business to grow to more than $100 billion in fiscal 2027, while Micron is benefiting from surging demand for high-bandwidth memory (DRAM optimized for AI chips) driven by a significant bottleneck in supply.