Warren Buffett is a legendary investor who has made incredible investments throughout his lifetime. His mentor, Ben Graham, wrote the classic investment guide The Intelligent Investor, in which Buffett’s investment philosophy is reflected. Buffett has now embarked on a new venture — Artificial Intelligence (AI). Buffett is one of the top investors in AI and has already made a massive $156 billion bet on two AI stocks.
The two stocks that are part of Buffett’s AI investment are Apple and Amazon. Berkshire Hathaway, a subsidiary of Buffett’s company, holds a whopping $155.5 billion worth of Apple shares in its portfolio. Berkshire Hathaway also has a significant stake in Amazon that is worth over $1.1 billion.
Apple and Amazon are two of the world’s leading companies in the AI technology. Apple is focusing on AI in its products and services. CEO Tim Cook has said that AI “will affect every product and every service that we have”.
On the other hand, Amazon has made some huge waves in the AI industry with its recent machine learning service called Bedrock. Bedrock allows customers to quickly build and scale AI apps with the help of pre-trained foundational models (FMs). Although Buffett might not have been thinking about AI when Berkshire first invested in Apple and Amazon, he has come to admire them for their AI initiatives.
Meanwhile, the Oracle of Omaha acknowledged in a CNBC interview that he does not possess a deep understanding of AI. He has even admitted he was “an idiot” for not investing in Amazon earlier.
Apple and Amazon’s exploration of AI offers them huge opportunities. For Apple, that opportunity lies in creating AI-powered services and devices. While Amazon’s focus remains on its cloud business and creating an AI-backed deluge of machine learning services.
Investing in AI stocks is certainly a smart bet, and Buffett’s investments in Amazon and Apple is proof of that. Both companies are exploring various possibilities to leverage AI and this may result in some great returns. Keeping in mind their focus and objectives, investors across the world can potentially benefit from the increasing AI capabilities of these companies.
