Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has made significant investments in the artificial intelligence (AI) sector, totaling a staggering $159 billion across eight key stocks. In a recent interview with CNBC, Buffett praised the potential of AI, calling it extraordinary, although he remained cautious about its overall benefits.
Apple stands out as Buffett’s most substantial AI holding, with Berkshire Hathaway’s stake in the tech giant valued at approximately $156.9 billion. Despite relatively stagnant sales growth in recent months, Apple is expected to announce new AI features for its iPhones at an upcoming developer conference, potentially boosting its performance.
While not directly listed in Berkshire’s regulatory filings, Buffett indirectly holds a stake in Microsoft through subsidiary New England Asset Management (NEAM), with a position worth $11.6 million. Microsoft has been at the forefront of the AI revolution, integrating cutting-edge technology like OpenAI’s GPT-4 model across its product range.
Another key player in Buffett’s AI portfolio is Amazon, with a $1.8 billion stake held by Berkshire Hathaway. Amazon’s innovative use of AI in e-commerce and cloud services has proven lucrative, with a surge in the adoption of generative AI expected to further enhance its Amazon Web Services platform.
Buffett’s investments also extend to chipmakers like Broadcom and NXP Semiconductors, both indirectly held through NEAM. These companies play a crucial role in providing custom AI accelerators and networking solutions, essential for scaling AI applications across various industries.
Despite no longer directly holding shares in IBM, Buffett maintains exposure to the tech giant through NEAM’s $5 million stake in the company. IBM’s Watson platform continues to be a prominent player in the AI space, offering advanced solutions for businesses harnessing the power of artificial intelligence.
In conclusion, while Buffett’s views on AI may be mixed, his substantial investments in key AI stocks indicate a strong belief in the technology’s potential. Amazon, Microsoft, and Alphabet emerge as top picks for long-term growth, with their robust cloud platforms poised to capitalize on the ongoing AI revolution. Investors looking for exposure to the AI sector may find value in these companies, backed by Buffett’s strategic investment decisions.
