"Wall Street has been consumed for months with fears that the artificial intelligence boom is actually a bubble about to pop, but that didn't stop Berkshire Hathaway from buying shares of a top AI hyperscaler. Warren Buffett's conglomerate revealed in a regulatory filing late Friday that it purchased 17.8 million shares of Google parent Alphabet during the third quarter. The stock jumped 4% in after-hours trading yesterday."
"It was the biggest stock addition last quarter and was worth about $4.3 billion at the end of September. Berkshire also bought shares of Chubb, Domino's Pizza, Sirius XM and Lennar. Meanwhile, Berkshire maintained its position in Amazon, another AI hyperscaler, in the third quarter. The addition of Alphabet comes amid a massive rally. Even after the most recent AI-fueled stock market selloff, Alphabet shares are still up 46% this year."
"To be sure, Alphabet has been on Berkshire's radar in the past. In 2019, Buffett's right-hand man at the time, the late Charlie Munger, admitted that he felt "like a horse's ass for not identifying Google better. I think Warren feels the same way." Back then, Google's dominance in search piqued Berkshire's interest. But today, the company is among the tech giants leading the charge into AI."
Berkshire Hathaway acquired 17.8 million shares of Alphabet during the third quarter, representing its largest stock addition and valued at about $4.3 billion at quarter-end. The company also bought shares of Chubb, Domino's Pizza, Sirius XM and Lennar while maintaining its Amazon stake. Alphabet shares have rallied, rising about 46% year-to-date despite recent AI-driven volatility. Major tech companies are investing heavily in AI infrastructure, with Morgan Stanley estimating roughly $3 trillion in hyperscaler spending on data centers and related infrastructure through 2028. Buffett's impending leadership transition leaves the purchase decision attribution unclear.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]