Stock Market Turning Into a Casino: Strategist Urges Cash Hoarding and Investment in CoreWeave
New York, NY – July 30, 2025 — As the stock market increasingly resembles a speculative gambling arena, veteran strategist Peter Oppenheimer of Goldman Sachs advises investors to raise cash reserves while selectively betting on high-potential AI companies, singling out CoreWeave as a top pick. The warning comes amid heightened market volatility and concerns over concentrated gains in a handful of tech giants, drawing parallels to a casino-like environment where rapid trades and speculative fervor dominate.
Oppenheimer, Goldman Sachs’ chief global equity strategist, argues that the stock market’s transformation into a “casino” stems from the surge in mobile trading apps and speculative instruments like call options, echoing sentiments from legendary investor Warren Buffett. In his 2024 letter to Berkshire Hathaway shareholders, Buffett cautioned that Wall Street profits from frenzied trading, with 70–90% of day traders losing money, akin to casino patrons. Oppenheimer reinforces this, noting that the top 10% of stocks now account for 33% of U.S. market capitalization, driven by AI hype, creating risks for investors overly concentrated in these names.
Despite the caution, Oppenheimer sees opportunity in the AI sector, particularly in CoreWeave, a cloud infrastructure provider tailored for AI applications. CoreWeave, which went public in March 2025, has seen its revenue skyrocket from near zero in 2022 to $1.9 billion in 2024, fueled by demand from clients like Nvidia, OpenAI, Meta Platforms, and Microsoft. Its specialized AI infrastructure, including high-performance GPUs, positions it as a “pure-play AI stock” with significant growth potential. However, Oppenheimer warns of risks, noting that Microsoft accounts for 62% of CoreWeave’s revenue, though recent Q1 2025 data shows improving customer diversification.
“Investors should diversify to mitigate risks from market concentration while capitalizing on AI’s transformative potential,” Oppenheimer said. “CoreWeave stands out for its rapid growth and strategic partnerships, but holding cash is critical to navigate potential disruptions or regulatory pressures.” He advises a balanced approach: raising cash to weather volatility and selectively investing in AI innovators like CoreWeave, which could benefit from the projected $631 billion global AI market by 2028.
The broader market context supports Oppenheimer’s cautious stance. The S&P 500 has hit record highs in 2025, driven largely by the “Magnificent Seven” tech stocks—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—which rose over 100% in 2024 compared to the S&P 500’s 24%. Yet, J.P. Morgan’s Jamie Dimon has warned of geopolitical and economic risks, including conflicts in Ukraine and the Red Sea, which could destabilize markets. Posts on X reflect similar sentiment, with @tradealgo_ noting, “Cash in hand, eyes on $AI: Market strategist’s call in a casino-esque market. Play smart.”
Oppenheimer’s strategy hinges on avoiding the pitfalls of speculative trading while seizing opportunities in AI. CoreWeave’s 100x revenue growth over three years and its role in powering AI infrastructure make it a compelling choice, but its high valuation and client concentration demand caution. As the market teeters between opportunity and risk, investors are urged to emulate Buffett’s patience, holding cash for stability while strategically backing AI pioneers like CoreWeave to ride the technological wave.
Sources: Goldman Sachs, Investopedia, CNBC, The Motley Fool, Business Insider, X posts