"Oh, the power of the "Warren Buffett premium!" With Alphabet stock now up close to 19% in a month while steering clear of the vicious November pullback in AI names, it seems like there's a new AI king in town, as Alphabet looks to flirt with a $4 trillion market cap by the year's end."
"In a prior piece, I predicted that Alphabet would be worth more than Nvidia ( NASDAQ:NVDA) by the end of 2026. And while it's not a hard claim to make, given recent action in their respective share prices, I do think that Nvidia, the GPU king, already has so much dominance and excellence baked in."
"Even after a 15% stumble, I still think there's more than just perfection baked into the share price, especially when you consider its wonderful quarter couldn't save it from the AI sell-off. As the tech market (Nasdaq 100) and the rest of the Magnificent Seven move higher without help from the AI chip giant, questions linger as to whether there's a new leader in town in Alphabet. I think there is. And despite the magnificent performance of Alphabet, I still do not think it's too late to follow Berkshire and company into the name."
Berkshire Hathaway acquired shares of Alphabet last quarter, triggering a strong market reaction. Alphabet shares jumped roughly 19% in a month and avoided the November AI pullback, with the stock possibly approaching a $4 trillion market cap. A prior projection places Alphabet above Nvidia by the end of 2026, though Nvidia retains substantial GPU dominance. Alphabet carries a "Buffett premium" and trades at about 31.6 times trailing P/E. Despite recent volatility and pricier multiples, Alphabet is presented as a generational bet on AI and remains attractive to follow Berkshire into.
Read at 24/7 Wall St.
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