Warren Buffett is once again drawing intense attention from investors after Berkshire Hathaway continued building its massive cash position while the veteran investor warned that parts of today’s market increasingly resemble “gambling.”

At Berkshire’s annual shareholder meeting and in related interviews, Buffett pointed to growing speculative behavior in markets, particularly around short-term options trading and highly priced stocks. “We’ve never had people in a more gambling mood than now,” Buffett said during a CNBC interview tied to the meeting.

The comments arrived as Berkshire Hathaway’s cash reserves climbed to nearly $400 billion, a figure many traders and analysts view as one of Buffett’s clearest market signals in years. Berkshire has been a net seller of stocks for multiple quarters, even as major indexes continued pushing toward record highs fueled by enthusiasm around artificial intelligence and large technology companies.

For many investors, Buffett’s positioning matters because of his long record navigating market cycles. Buffett has historically accumulated cash during periods when valuations appeared stretched and later deployed capital aggressively during downturns or periods of market stress.

That does not necessarily mean Buffett is predicting a crash. Analysts noted that Berkshire’s strategy may reflect caution about current valuations rather than an outright bearish call on the economy or stocks overall. Buffett himself said the current investing environment is “not ideal” for deploying large amounts of capital, while emphasizing that Berkshire remains patient when attractive opportunities are limited.

Investors appear particularly focused on Buffett’s concerns about speculative activity. Over the past year, retail trading activity in leveraged options and momentum-driven stocks has accelerated alongside the AI rally. Some market observers believe Buffett is signaling that enthusiasm in certain parts of the market may be moving faster than underlying fundamentals.

Technology and AI-related stocks remain at the center of that conversation. Much of the recent market rally has been concentrated in a relatively small group of mega-cap companies tied to artificial intelligence infrastructure, software, and semiconductors. Analysts said Buffett’s comments may reinforce broader concerns about elevated valuations in some high-growth sectors.

At the same time, Buffett has not exited the market entirely. Berkshire continues to hold major positions in companies including Apple, Coca-Cola, and American Express, while selectively adding to certain investments over the past year.

That distinction is important for investors trying to interpret Buffett’s message. Market observers said his comments are being viewed less as a warning to abandon stocks altogether and more as a reminder to remain selective and cautious during periods of elevated optimism.

The broader economic backdrop is also contributing to investor sensitivity around Buffett’s remarks. Markets are balancing strong corporate earnings and continued AI spending against concerns over inflation, interest rates, geopolitical tensions, and slowing areas of the global economy.

What investors watch next could depend heavily on upcoming inflation reports, Federal Reserve policy signals, corporate earnings guidance, and whether market leadership continues narrowing around AI-related names.

For now, Buffett’s unusually large cash position — combined with his warnings about speculative behavior — is being interpreted by many traders as a sign that one of Wall Street’s most closely watched investors sees increasing risks beneath the market’s recent momentum.