Buffett Embraces AI: Berkshire Gains $1.4 Billion from Alphabet Investment

Warren Buffett’s Berkshire Hathaway has earned a $1.4 billion gain from its latest investment in

Inc., as the tech company’s shares jumped 19.2% in November, bucking the downward trend seen in the broader tech sector. The conglomerate revealed —totaling 17.85 million shares—by September 30, making it Berkshire’s tenth-largest stock holding. This decision marks a notable shift for Buffett, rather than the unpredictability of tech stocks.

Alphabet’s recent rally is largely attributed to its rapid advancements in artificial intelligence and cloud services. The company

, Gemini 3, which now supports 650 million users. Google Cloud’s infrastructure initiatives, to build a new data center in Turkey and a $100 billion AI infrastructure fund co-managed with Brookfield, highlight its ambition to lead the enterprise AI sector. At the same time, the importance of expanding computing power by 1,000 times over the next five years to satisfy AI demand.

The stock’s strong performance has caught the market’s eye as Alphabet’s valuation nears $4 trillion, fueled by impressive third-quarter earnings.

, with Google Cloud growing 34% compared to the previous year. that Meta’s reported interest in acquiring Google’s Tensor Processing Units (TPUs) for its data centers could further support Alphabet’s AI hardware approach. This news has already pushed Alphabet’s stock to new highs, while amid concerns about rising competition.

Berkshire’s investment reflects growing market confidence in AI-powered expansion, even as regulatory and valuation risks persist. is lower than competitors like Microsoft and Nvidia, which trade at 31.8, making Alphabet appear relatively undervalued. Still, and annual capital expenditures of $91–93 billion illustrate both the growth potential and the possible pressure on profit margins from its AI investments.

This investment comes as Berkshire prepares for a leadership change, with Vice Chairman Greg Abel set to take over as CEO in January 2026.

the Alphabet purchase signals a move toward high-growth industries, marking a departure from Buffett’s usual value-investing strategy. For now, the stock’s upward trend remains strong, with their rating to “Outperform” and setting a price target of $355.