On Dec. 31, after roughly six decades at the helm of Berkshire Hathaway (BRKA 0.29%)(BRKB +0.11%), Warren Buffett retired as CEO. He oversaw cumulative gains in his company’s Class A shares (BRKA) of more than 6,000,000% and became one of Wall Street’s most prominent buy-and-hold investors.
While the Oracle of Omaha was never one for tech stocks, he inadvertently left his successor, Greg Abel, with significant exposure to artificial intelligence (AI) stocks in Berkshire’s $313 billion portfolio. Abel is now overseeing $64 billion in aggregate investments tied to three unstoppable AI stocks: Apple (AAPL 0.38%), Alphabet (GOOGL 2.00%)(GOOG 2.25%), and Amazon (AMZN 1.62%).
Image source: Getty Images.
Apple: $57.9 billion of invested assets
Warren Buffett always considered Apple a consumer goods company, which remains true to this day, considering the bulk of its sales derive from physical devices (iPhone, Mac, iPad, and wearables). However, Apple’s future — and nearly $58 billion of Berkshire’s invested capital — lies with the integration of AI into its physical platforms.
In June 2024, Apple introduced Apple Intelligence, its generative AI system that’s been integrated into its physical devices. Users can remove unwanted objects in their photos with Apple Clean Up, quickly summarize text, and create custom emojis. Apple also integrated its voice assistant, Siri, with the large language model (LLM) that sparked the AI hoopla, ChatGPT.
In addition to its newfound AI ties, Apple CEO Tim Cook is promoting subscription services. Subscriptions should boost margins and customer loyalty while reducing the revenue ebbs-and-flows associated with iPhone upgrade cycles.
Today’s Change
(-2.00%) $-6.13
Current Price
$301.00
Key Data Points
Market Cap
$3.6T
Day’s Range
$298.27 – $306.00
52wk Range
$140.53 – $349.00
Volume
108K
Avg Vol
32M
Gross Margin
59.68%
Dividend Yield
0.28%
Alphabet: $5.5 billion of invested assets
During the third quarter of 2025, Buffett opened a $4.3 billion position in Alphabet (the Class A shares, GOOGL). This stake has since grown to $5.5 billion.
While Alphabet is best known for its virtual monopoly in global internet search through Google, the cash cow operating segment of its future is cloud infrastructure service platform Google Cloud. Alphabet has spared no expense to incorporate generative AI and LLM solutions into Google Cloud, leading to jaw-dropping sales growth of 48% in the December-ended quarter. Cloud service margins are considerably higher than advertising margins.
Alphabet also sports one of the biggest share repurchase programs on Wall Street. It’s bought back $346 billion of its stock since the start of 2016, trailing only Apple’s $841 billion in buybacks since initiating a repurchase program in fiscal 2013.
Image source: Getty Images.
Amazon: $490 million of invested assets
Despite Warren Buffett dumping 77% of Berkshire Hathaway’s stake in Amazon during his final quarter as CEO, it remains a $490 million position that’s now Abel’s responsibility.
Amazon is a dual-industry leader. While most consumers are familiar with its leading role in e-commerce, they may not realize that Amazon Web Services (AWS) accounts for nearly a third of global cloud infrastructure service spending. Like Google Cloud, AWS has been incorporating generative AI and LLM capabilities, resulting in 24% constant-currency sales growth in the fourth quarter and $142 billion in annual run rate revenue.
Amazon is also historically inexpensive relative to its future cash flow. Whereas investors paid a median of 30 times year-end cash flow to own Amazon stock throughout the 2010s, they can now buy shares at 9.9 times forecast cash flow in 2027.
