Berkshire Hathaway stunned the market this quarter by initiating a multibillion-dollar position in Alphabet just months before Warren Buffett steps down as CEO.
While Berkshire trimmed its long-held Apple stake yet again, it bought almost 18 million Class A shares of Alphabet at just north of $200 per share, now worth over $5.5 billion.
When investors start getting jittery about AI valuations, the instinct is to trim anything tied to artificial intelligence. But that’s tricky when many of the biggest AI beneficiaries are mega-cap tech companies that were thriving long before generative AI existed. Amazon is a perfect example, a business still defined by eCommerce but increasingly central to the global AI build-out.
» Read more about: Is This Mag 7 Stock Bucking the AI Trend? »
If you follow the market’s biggest winners, you already know Alphabet and NVIDIA sit at the center of the AI boom. But despite being lumped together as “AI beneficiaries,” the two companies couldn’t be more different. One is a diversified digital empire with unmatched cash flow. The other is the indispensable hardware supplier powering the AI build-out.
Stanley Druckenmiller almost never buys newly public stocks, yet his Duquesne Family Office acquired 4.3 million shares of StubHub shortly after its September IPO.
When a macro investor with his track record breaks his own pattern, it usually signals that he sees something the rest of the market hasn’t priced in.
Druckenmiller sees StubHub as a dominant,
» Read more about: Why Stanley Druckenmiller Took a Swing at StubHub »
For months, skeptics have suggested that AI spending was leveling out. Nvidia’s numbers told a very different story. The company reported $57 billion in revenue, a 62.5% jump over the prior year and a 22% increase from the previous quarter.
Profitability soared alongside it, with adjusted EPS climbing 60% and margins reaching an impressive 73.4%.
» Read more about: Nvidia Just Proved the AI Boom Isn’t Slowing »
CEO Lisa Su has unveiled a long-term forecast that forces investors to rethink where AMD could be heading.
The new guidance fundamentally reshapes how AMD’s role in the AI ecosystem should be valued.
AMD forecasts explosive growth, including 60% annual expansion in data centers.
» Read more about: AMD Just Raised the Bar With a Bold 5-Year Plan »
Berkshire Hathaway’s latest 13F filing confirmed it now owns three Mag 7 companies. Apple, Amazon, and now Alphabet collectively give Berkshire a front-row seat to the AI arms race, and Alphabet’s debut in the portfolio was the standout surprise.
The filing showed Berkshire continued trimming Apple, though it still accounts for about 21% of the equity book,
» Read more about: Warren Buffett’s Surprise Move Into the AI Big Leagues »
Among the more compelling income opportunities in this corner of the market is Ares Capital, a business development company offering a nearly double-digit yield supported by one of the strongest credit platforms in the country.
That yield isn’t the main reason sophisticated investors pay attention, though. What distinguishes Ares Capital is the durability of the system generating those payouts.
» Read more about: Is This The Most Reliable Passive-Income Engine? »
Nuclear power is reentering the center of America’s energy strategy as AI, data centers, and mass electrification push electricity demand to levels not seen in decades. Since nuclear already produces more carbon free electricity than solar and wind combined, the U.S. cannot meet future demand without it.
This shift has put renewed attention on Centrus Energy.
» Read more about: Is This Under-the-Radar Stock Nuclear’s Next Big Thing? »
When Berkshire Hathaway showed up with a new position in Alphabet, more than a few eyebrows went up. Alphabet, after all, is pursuing everything from autonomous driving to quantum computing, hardly the plain-vanilla playbook Buffett made famous.
But once you dig in, the move becomes far less mysterious. Alphabet is still, above all else,
