While acknowledging that AI could dramatically improve productivity and change the world, Marks cautions that widespread technological transformation does not automatically translate into wealth for investors. Driven by his cautious outlook on tech valuations and uncertain long-term AI economics, an analysis of Oaktree Capital Management’s second-quarter 2026 13F filing highlights several major non-AI stock positions held by the firm.

Howard Marks and the AI Bubble Warning

During an October interview with investor and author William Green, Marks revisited his long-standing market philosophy. Green reminded the billionaire of his past warnings that most companies investors bet on during tech booms eventually become worthless. Marks agreed with the sentiment, emphasizing a crucial distinction:

"Change the world and investors making money are not the same thing."

Marks raised concerns that intense competition among AI providers could force price cuts and squeeze profit margins. Alternatively, businesses utilizing AI might pass their cost savings directly to consumers through lower prices rather than boosting their own corporate bottom lines. He also warned against chasing smaller, speculative AI companies using a lottery-ticket mentality simply because established technology leaders appear expensive.

These valuation concerns coincide with massive capital expenditures across the tech sector. Major firms like Amazon, Microsoft, Google, and Meta are on track to spend more than $720 billion on data centers and infrastructure this year—roughly triple their spending from two years ago—leaving many questioning how labor-saving tools will reliably translate into bottom-line profits.

Top Non-AI Stock Picks from Oaktree Capital

As Marks navigates these market uncertainties, Oaktree Capital Management maintains significant positions in traditional sectors. Based on Oaktree's Q2 2026 13F filing, several prominent non-AI holdings anchor the portfolio:

  • Expand Energy (NASDAQ: EXE): Backed by a $478 million stake, this major U.S. natural gas producer benefits from its Haynesville wells in Louisiana and East Texas sitting close to developing Gulf Coast LNG export plants.
  • Garrett Motion (NASDAQ: GTX): Representing a $275 million stake, this manufacturer of turbochargers helps car and truck engines generate more power from less fuel, supported by growth in commercial and industrial applications.
  • AngloGold Ashanti (NYSE: AU): Oaktree holds a $257 million stake in this gold mining company, which pays out 50% of its annual free cash flow as dividends and is developing new U.S. projects in Nevada.
  • Telephone and Data Systems (NASDAQ: TDS): Valued at $196 million following a 24% stake increase in Q2, TDS operates broadband and fiber internet services through TDS Telecom alongside an 80% ownership stake in Array Digital Infrastructure.
  • Viper Energy (NASDAQ: VNOM): Backed by a $161 million stake, this subsidiary of Diamondback Energy owns oil and gas mineral and royalty interests in the Permian Basin, collecting a share of revenue without direct drilling costs.

Market Implications

Howard Marks' cautious stance on artificial intelligence underscores a timeless financial lesson: technological revolutions and profitable investments do not always travel the same path. While tech giants race to secure market share through unprecedented data center expenditures, disciplined investors continue to evaluate traditional cash-generating assets in energy, mining, and telecommunications as reliable alternatives against speculative market behavior.