Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has made significant investments in the artificial intelligence (AI) sector through his company’s stock portfolio. Two prominent AI stocks, Apple and Amazon, account for 29.3% of Berkshire’s holdings, reflecting Buffett’s interest in this growing trend.
Apple, with a market cap of approximately $3.44 trillion, is Buffett’s largest bet, making up 28.8% of Berkshire Hathaway’s total stock portfolio. However, in the second quarter, Berkshire sold 389 million shares of Apple stock, reducing its overall holdings by 49%. While Apple’s dominance in the mobile hardware space has been a performance driver, there may be uncertainty about its position in the rapidly evolving world of AI.
On the other hand, Amazon, valued at $3.11 trillion, has been at the forefront of AI for years. The company has leveraged AI to enhance its e-commerce business and offers a wide range of services through Amazon Web Services. Its generative AI capabilities, powered by vast data stores, have attracted significant interest. Despite being a smaller portion of Berkshire’s portfolio at 0.5%, Amazon’s strong presence in e-commerce and cloud computing positions it as a leader in AI opportunities.
Buffett’s recent moves suggest a cautious approach to the stock market, including diversifying the portfolio and increasing cash reserves. While Apple’s future in AI remains uncertain, its strong foundations in the mobile space could drive success in AI hardware and software initiatives. Amazon, backed by its e-commerce business and leading cloud computing segment, presents a reliable name with tremendous AI potential.
Although Amazon’s stock experienced a decline after its second-quarter earnings release, trading at a lower valuation, this presents an unusual opportunity to invest in a Buffett-backed stock at a bargain price.