“Old ginger is spicier”! Outperforming semiconductors and debt panic, post-Buffett era Berkshire (BRK.A.US) hits another record high

Soojintong Finance APP has learned that Berkshire Hathaway Class B shares rose by as much as 3.2% to $543.06 during Wednesday's session, setting a new all-time high above the previous record from May 2, 2025. The stock price fell for several months after Buffett announced his retirement a year ago, but the market has now priced in the “post-Buffett era” with a new high. Notably, amid the dramatic volatility in AI semiconductors and mounting corporate debt pressures, Berkshire’s new high is interpreted by the market as a victory for defensive logic.

Cash reserves nearing $400 billion, Abel holds the “option”

Abel has been in office for less than a year, but has been very active: restarting share buybacks, acquiring Taylor Morrison Home Corp. for $8.5 billion, and significantly increasing holdings of Alphabet in the second quarter to about $37.8 billion. However, analysts point out that the core support for the new share price high is not these transactions themselves, but rather the balance sheet left by Buffett.

Data shows Berkshire's cash reserves have risen to around $397 billion, continuing to break records after reaching $373 billion at the end of 2025. Near $400 billion in liquidity accounts for over 50% of total investable assets. KBW analyst Meyer Shields bluntly states that high short-term interest rates mean this cash “will earn more profit.” In other words, while others are forced to scale back, Berkshire still has the ability to make moves—this is a kind of alpha in itself.

AI semiconductors fall for eight straight days, cracks appear in financing structure

The Philadelphia Semiconductor Index has fallen by over 13% in the past eight trading days, wiping out about $2 trillion in market capitalization and setting the longest losing streak since the 2008 financial crisis. On the surface, it appears to be another round of “AI bubble” speculation, but the real cracks have appeared in credit. CoreWeave's share price plunged more than 25% in a single week, its bonds fell to distressed levels, CDS soared to 1,128 points, and the market priced in a default probability of over 50%, with $1 face-value bonds trading at only about $0.78.

Bank of America’s Michael Hartnett points out that the market focus has shifted from “how big is the AI space” to “how much profit can enormous investment ultimately generate.” AI infrastructure capital expenditure is approaching $1 trillion per year, with a considerable proportion dependent on debt financing—and the 10-year US Treasury yield has risen to 5.09%. High interest rates both reduce the present value of future cash flows and increase financing costs, creating a dual squeeze on the AI narrative that relies on leverage for expansion.

The debt default chain bypasses Berkshire

Debt pressure is not limited to the AI sector. Data shows that the spread between CCC-rated US corporate bonds and Treasuries has widened to 12 percentage points, up from 8.08 percentage points a year ago; over the past 12 months, recovery rates for defaults have been just 29%. JPMorgan strategists expect the high-yield bond default rate to rise from 2.25% in 2026 to 2.75% in 2027, with leveraged loan default rates reaching 4.50% over the same period.

Moody’s previously estimated that over $1 trillion in investment-grade debt will mature in the next few years, and rising interest rates will force companies to refinance at higher costs. Within this chain, Berkshire is almost the only large entity that does not need to answer the question “what happens when debt matures”—its cash earns interest, while others’ debt creates pressure. Holdings in Apple and Coca-Cola have recently set new records, further supporting Berkshire’s book value.

The essence of “seasoned”: Not being forced to sell on down days

At the shareholder meeting, Abel made it clear he “would not pursue AI for the sake of AI,” insisting that power costs for data center expansion should be borne by ultra-large clients. Such statements seem conservative during an AI frenzy, but after CoreWeave’s bond yield soared above 15%, they reflect discipline.

Analysts note that Buffett’s legacy is not just his stock-picking track record, but a structure that preserves the right to choose the future by holding cash while others bet on the future with debt. What the new Berkshire share price high is valuing is the rarity of this structure in times of amplified volatility.