1 Monster AI Stock Greg Abel and Warren Buffett Are Extremely Bullish On
Warren Buffett, who recently stepped down as chairman of Berkshire Hathaway, doesn’t have a history of owning technology businesses. While the conglomerate’s investment in Apple can be viewed as a bet on a strong consumer brand, the Omaha company’s sizable bet on Alphabet (GOOGL -0.34%) (GOOG -0.56%) signals an evolution.
The legendary investor and his successor, Greg Abel, are extremely bullish on this monster artificial intelligence (AI) stock.
Image source: The Motley Fool.
It came as a surprise when it was revealed in July that Warren Buffett was the one who initiated Berkshire Hathaway’s first purchase of Alphabet shares in the third quarter of 2025. He clearly understands how dominant a business the internet giant is, with widely adopted and irreplaceable platforms, network effects, first-rate technical expertise, and sizable profits.
Berkshire Hathaway added to its stake in 2026. And as of Sept. 25, Alphabet makes up 10% of its entire portfolio. Between Class A and Class C shares, this business is its third-largest holding.
92/100
Today’s Change
(-0.34%) $-1.17
Current Price
$342.75
Key Data Points
Market Cap
Day’s Range
$339.56 – $343.59
52wk Range
$235.84 – $408.61
Volume
19.3M
Avg Vol
28.7M
Gross Margin
60.94%
Dividend Yield
0.25%
Abel and Buffett are clearly bullish on the leading AI enterprise, which currently trades at a reasonable 22.8 times consensus earnings estimates. They are showcasing their confidence in Alphabet at a time when it has raised tremendous amounts of capital to invest aggressively in the development of data centers.
The two executives must have a firm belief that the company will generate satisfactory returns on its massive capital expenditures. Time will tell if this is the right call.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.