Warren Buffett-led Berkshire Hathaway Owns $67 Billion of This AI Stock

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Neil Patel, The Motley Fool

Sat, Apr 5, 2025, 6:25 AM 4 min read

Warren Buffett has been the CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) for decades. His way grounds successful allocating superior for the institution is astonishing, with a stellar compound yearly maturation complaint of astir 20%. In the past respective years, though, 1 company, successful particular, has produced a fantastic instrumentality that has lifted the Omaha conglomerate.

Berkshire Hathaway has a immense nationalist equities portfolio. Given Buffett's past of avoiding investments astatine the cutting borderline of technology, it mightiness beryllium astonishing to larn that helium owns $67 cardinal of this artificial quality (AI)-related stock (as of April 1). While it has soared 617% successful the past 10 years, it's presently trading 14% beneath its peak.

Here's what investors request to know.

In 2024, Berkshire ended the twelvemonth with a $334 cardinal presumption successful currency and Treasuries. Buffett's apical position, Apple (NASDAQ: AAPL), was trimmed significantly. Nonetheless, it inactive represents the largest holding successful the portfolio.

Apple mightiness beryllium a larger AI subordinate than galore radical realize. The institution announced Apple Intelligence past June, and officially launched successful October 2024. Newer versions of the iPhone, iPad, and Mac person AI-supported capabilities, specified arsenic penning and editing tools, generating photos, and creating peculiar emojis. In emblematic Apple fashion, privateness and information are the cornerstones of this caller tech push.

However, determination are worries that Apple is falling down successful the AI race. Apple Intelligence was expected to boost iPhone sales, the company's astir fashionable product. But iPhone gross was down 1% twelvemonth implicit twelvemonth successful the fiscal 2025 archetypal quarter.

CEO Tim Cook mentioned connected the latest net telephone that income of the iPhone 16 suite were amended successful markets wherever Apple Intelligence was available. Regardless, it hasn't pushed up request similar galore observers expected.

Apple precocious announced that the anticipated upgrade to Siri has been delayed. The anticipation was for the virtual adjunct to supply a unsocial and personalized acquisition for users, relying connected cognition that it gains from assorted apps to trade insightful responses. Consumers whitethorn not spot an update until 2026.

The critics person a valid point. Apple was late, compared to tech peers, erstwhile it introduced Apple Intelligence past June. That was 19 months aft OpenAI's ChatGPT was released to the satellite successful November 2022. Apple is simply a ascendant endeavor with unlimited fiscal resources and immoderate of the champion endowment around, truthful it makes you scratch your caput erstwhile wondering wherefore it took the institution truthful agelong to get into this game.

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