News about Ray Dalio

Bridgewater Associates founder Ray Dalio warns that U.S. government borrowing and AI companies' capital needs are competing for the same investor dollars, which could erode shareholder returns. In a LinkedIn post, he projects net U.S. debt supply will reach about $4.4 trillion in 2027, up roughly 26% from $3.5 trillion in 2025, while corporations will need about $2 trillion to refinance debt and $1.4 trillion in new borrowing that year. Hyperscaler bond issuance reached about $220 billion in the first half of 2026, versus $108 billion in all of 2025, and the IMF reports hyperscalers now make up 10% of global investment-grade bond issuance, up from under 1% in 2024. The article also flags supplier financing risks, such as Broadcom agreeing to lend Anthropic up to $42 billion and Nvidia's involvement in more than $750 billion of AI-related deals. It concludes that investors should be selective, favoring AI companies that can fund investment and interest from operating cash flow rather than repeated refinancing.

Ray Dalio told the Forbes Global CEO Conference in Singapore that the AI boom resembles a "classic bubble" and that the market is nearing one. However, Bridgewater's holdings show NVIDIA as its largest single stock and third-largest position overall. The author cites second-quarter fiscal 2027 revenue of $96.22 billion, up 105.8%, a 55.60% net margin, a P/E of 46, and $26.0 billion returned to shareholders last quarter. Risks noted include $279 billion in supply commitments, $108.5 billion in guarantees to AI cloud partners, China's exclusion from guidance, and a 5.27% stock drop last week. The author keeps buying because AI spending is still climbing.