Key Points
Warren Buffett’s Berkshire Hathaway is now a significant institutional investor in technology, particularly in artificial intelligence (AI), with nearly 25% of its equity portfolio allocated to Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG/GOOGL). This shift marks a departure from Buffett’s long-standing skepticism toward tech investments.
Apple’s recent AI initiative, launched in mid-2024, has been perceived as cautious and limited, focusing on newer devices and select applications. In contrast, Alphabet has embraced AI more aggressively, with its Google Cloud unit reporting a 34% year-over-year revenue increase in the third quarter, driven in part by strong demand for its AI tools, generating over $15 billion in revenue.
While Apple struggles to establish a dominant AI presence, Alphabet’s commitment to AI integration is solidifying its competitive edge in the marketplace.
