Warren Buffett's AI Bets: 22% of Berkshire Hathaway's $282 Billion Stock Portfolio Is in These 2 Artificial Intelligence Stocks
Key Points
Apple has some proving to do in the AI space, but its stock remains Berkshire Hathaway's biggest bet. Generative AI represents Amazon's greatest growth driver now, and it could translate into trillions of dollars.
At the end of this year, Warren Buffett will step down as Berkshire Hathaway's CEO. Since taking over in 1965, Buffett has built an investment powerhouse, delivering strong returns through value investing principles. Recently, Berkshire Hathaway has increased exposure to technology and growth stocks, with artificial intelligence (AI) emerging as a major focus.
Here’s a look at the two stocks that make up roughly 22% of Berkshire Hathaway’s $282 billion stock portfolio.
1. Apple
Apple (NASDAQ: AAPL) is the world’s third-largest company by market capitalization, valued at $3 trillion. It accounts for 21.6% of Berkshire's stock portfolio, making it Buffett’s largest publicly traded holding. This is despite Berkshire selling over 600 million Apple shares last year.
Berkshire has been trimming stock holdings and boosting cash reserves, likely reflecting concerns over market valuations amid macroeconomic and geopolitical risks. The reduction in Apple shares may also signal specific challenges facing the company.
Apple’s strong mobile hardware base positions it well to build AI capabilities. However, it trails competitors like Microsoft, Alphabet, and Meta in key AI developments. For example, Apple’s next-generation AI-powered Siri platform has faced performance setbacks, and the rollout of its Apple Intelligence platform in China was delayed due to partnership challenges. Although Apple has now partnered with Alibaba to address this, the Chinese market remains difficult due to local brand preferences and geopolitical tensions.
While Berkshire’s reduced Apple position lowers its AI exposure, Apple remains its largest stock holding. Buffett evidently still values the company’s strengths and potential in AI, even if Apple hasn't yet matched the AI progress of some peers.
2. Amazon
Amazon (NASDAQ: AMZN) represents a smaller portion of Berkshire’s portfolio. Interestingly, Buffett did not personally initiate this investment; one of his portfolio managers, Todd Combs or Ted Weschler, made the call. Buffett has admitted he missed the chance to buy Amazon earlier.
Amazon’s growth today is strongly driven by generative AI, particularly through Amazon Web Services (AWS), its cloud business. AWS holds the largest share of the global cloud market at 30%, according to Statista.
CEO Andy Jassy expects generative AI components to become integral to nearly all apps, much like databases and storage today. Since most AI applications will run on the cloud, Amazon is positioned to capture a significant portion of this growth.
Amazon offers a layered approach for generative AI: custom large language models (LLMs) for big clients, semi-custom solutions via Amazon Bedrock, and ready-made AI tools for small businesses, such as automated product description generators.
AWS sales grew 17% year-over-year in Q1 and delivered 63% of Amazon’s operating income, making it the company's second-fastest growing segment after advertising.
It remains to be seen if Berkshire will increase its Amazon holdings after Buffett’s departure later this year. The change in leadership could bring shifts in the portfolio’s tech exposure.
For finance professionals interested in how AI is shaping major investment portfolios, understanding these two companies’ AI strategies offers practical insight into where growth may be headed. For those looking to further explore AI’s business applications, Complete AI Training provides specialized courses that cover AI tools relevant to finance roles.
Your membership also unlocks:
