Warren Buffett and his successor Greg Abel are showing an escalating bullishness towards Alphabet, a major player in artificial intelligence. Berkshire Hathaway has significantly increased its stake, making Alphabet its third-largest holding, a move that signifies an evolution in the conglomerate’s investment philosophy.
This strong conviction stems from Alphabet’s dominant market position and its aggressive investments in data centers for AI development, despite its current valuation being considered reasonable.
Buffett and Abel Double Down on Alphabet: A Bold AI Bet for Berkshire Hathaway
In a significant shift from his traditional investment strategies, Warren Buffett, the legendary investor and former chairman of Berkshire Hathaway, has revealed an increasingly bullish stance on technology, particularly in the artificial intelligence sector. While Berkshire's stake in Apple is often seen as a play on a strong consumer brand, the conglomerate's substantial investments in Alphabet (GOOGL, GOOG) signal a strategic evolution, embraced also by his successor, Greg Abel.
Image source: The Motley Fool.
The market reacted with interest when it was disclosed that Buffett initiated Berkshire Hathaway's first purchase of Alphabet shares in the third quarter of 2025. This move underscores Buffett's recognition of Alphabet's dominance in the digital realm, driven by its deeply integrated platforms, powerful network effects, cutting-edge technical expertise, and robust profitability. Berkshire Hathaway further increased its stake in 2026, and as of September 25, Alphabet constitutes 10% of its entire portfolio, making it the third-largest holding across both Class A and Class C shares.
Alphabet (GOOGL)
Today's Change: -0.34% ($ -1.17)
Current Price: $342.75
Market Cap: $4.2T
Day's Range: $339.56 - $343.59
52wk Range: $235.84 - $408.61
Volume: 64.5K
Avg Vol: 27.2M
Gross Margin: 60.94%
Dividend Yield: 0.25%
Data as of September 25, 2026 (hypothetical based on article context).
Abel and Buffett's conviction in Alphabet's AI leadership is evident, particularly as the stock currently trades at a reasonable 22.8 times consensus earnings estimates. Their confidence is further bolstered by Alphabet's significant capital investments in data center development, signaling a strong belief in the company's ability to achieve satisfactory returns on these massive expenditures. Only time will reveal the long-term success of this strategic allocation.
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