Alphabet shares surged nearly 6% to a new record after Berkshire Hathaway revealed a $4.93 billion stake — a rare tech bet from a historically tech-averse conglomerate.
The move signals strong conviction in Alphabet’s AI strategy, even as the market grows increasingly cautious about stretched valuations and massive data-center spending across Big Tech.
🔍 Key Highlights
- Berkshire bought 17.85M Alphabet shares, one of its final major moves under Warren Buffett.
- Marks a rare shift for Berkshire, traditionally skeptical of tech but increasingly aligned with AI-driven fundamentals.
- Analyst take: “The move validates Google’s strong fundamentals and AI leadership — especially through Google Cloud and Gemini.”
- Alphabet’s latest earnings showed AI investments transforming Google Cloud into a key growth engine.
- Berkshire remains selective:
- Continued selling Apple and Bank of America in Q3
- Cash pile now at a record $381.7B
- Alphabet’s rally could add ~$180B in market cap if gains hold.
🧠 Strategic Context
Buffett and Charlie Munger have long regretted “missing Google early.”
This new position also comes as leadership transitions to Greg Abel in 2025 — possibly signaling a subtle evolution in Berkshire’s investment mindset.
Meanwhile, the move gives Berkshire exposure to one of the strongest players in the global AI race at a time when many investors fear an AI bubble.
📈 Why This Matters
- Reinforces Alphabet’s positioning as a core AI infrastructure & cloud leader
- Signals institutional confidence despite market-wide tech jitters
- Highlights Berkshire’s ongoing shift in portfolio construction ahead of a major leadership transition