Warren Buffett’s Berkshire Hathaway has a significant portion of its portfolio invested in three artificial intelligence (AI) stocks. These stocks comprise over 45% of Berkshire’s $398.7 billion portfolio of publicly traded securities. Snowflake, which accounts for 0.2% of Berkshire’s portfolio, has developed its Data Cloud to help businesses aggregate their critical data onto one platform.
The company’s Cortex AI platform allows businesses to create applications by combining ready-made large language models (LLMs) with their own data. Amazon, representing 0.5% of Berkshire’s portfolio, has expanded into cloud computing, streaming, digital advertising, and AI. Amazon Web Services (AWS) offers the Amazon Bedrock platform, which provides developers with a library of ready-made LLMs and a family of in-house-developed LLMs called Titan.
Apple is the largest holding in Berkshire’s portfolio, accounting for 44.5%. The company is entering the AI domain with the upcoming release of iOS 18 and the introduction of Apple Intelligence software. This software, developed in partnership with OpenAI, will enhance various functionalities with advanced AI capabilities.
Buffett’s top AI stock picks
Buffett has historically avoided the hype of new trends. However, these significant investments in AI-driven companies demonstrate how Berkshire Hathaway’s portfolio is poised to benefit from the substantial growth expected in the AI sector.
Cathie Wood of Ark Invest and Warren Buffett of Berkshire Hathaway both have positions in Amazon, albeit for different strategic reasons. Amazon’s ability to generate significant cash flow is a major factor that appeals to both investors. Amazon’s aggressive pursuit of AI over the past year includes a $4 billion investment in Anthropic, a competitor in the AI space.
The company has also announced several AI initiatives, including new AI features for its Amazon Web Services (AWS) cloud platform, legacy e-commerce business, and burgeoning advertising operations. Doug Anmuth of JP Morgan Chase predicts Amazon stock could surge by another 28% over the next 12 months. The company seems well-positioned to dominate for years, given Amazon’s diverse businesses and its strategic investments in AI.
Considering AI’s long-term potential and Amazon’s robust investments in this area, buying Amazon stock now seems like a prudent decision. The company’s strategic moves in AI suggest a promising future.
