For 60 Years Buffett Avoided Big Tech. Greg Abel Just Made an AI Stock a Top-5 Berkshire Holding

Berkshire Hathaway previously avoided most large technology investments, treating them as outside its circle of competence, with Apple as a notable exception. That approach has changed under CEO Greg Abel, who sold about 16 positions and built a large stake in Alphabet, reportedly becoming a top-5 holding. Alphabet has grown into a full-stack AI competitor, with Q1 2026 revenue of $109.90 billion, up 22% year over year, and EPS of $5.11 versus a $2.63 consensus. Google Cloud revenue rose 63% to $20.03 billion, and backlog nearly doubled to over $460 billion. Gemini processing reached more than 16 billion tokens per minute, and paid subscriptions reached 350 million. Alphabet trades at a trailing P/E near 17, with return on equity around 36% and operating margins above 32%.

"Berkshire Hathaway under new CEO Greg Abel sold roughly 16 positions and aggressively built a stake in Alphabet that is now reportedly a top-5 holding. The company in question is the parent of Google, an AI-leaning name that Buffett himself once said he regretted not buying years ago. Abel's first major signature on the portfolio is a philosophical statement as much as a stock pick."

"Alphabet ( NASDAQ:GOOGL | GOOGL Price Prediction) is a cash machine that has quietly transformed into the most credible full-stack AI competitor to Microsoft and NVIDIA. Q1 2026 revenue hit $109.90 billion, up 22% year over year, with EPS of $5.11 against a $2.63 consensus. Google Cloud is the headline. Cloud revenue grew 63% to $20.03 billion, and backlog nearly doubled quarter on quarter to over $460 billion."

"CEO Sundar Pichai framed the moment on the earnings call: "2026 is off to a terrific start. Our AI investments and full stack approach are lighting up every part of the business." The hard data backs the rhetoric. Gemini models are processing more than 16 billion tokens per minute via direct API, up 60% from the prior quarter, and paid subscriptions reached 350 million. The full 8-K is on file with the SEC."

"Valuation is the part Buffett would have warmed to. Alphabet trades at a trailing P/E near 17 on this data set, with return on equity around 36% and operating margins above 32%. The stock has rewarded the thesis: GOOGL is up 134% ov"

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