Under new CEO Greg Abel, Berkshire Hathaway has dramatically increased its AI bets, with Alphabet and Apple now representing nearly 30% of the conglomerate's $356 billion stock portfolio.
Abel has quadrupled Berkshire's Alphabet stake since early 2026, bringing it to $36.6 billion, while Apple remains the largest position at 19.5% despite a 75% reduction in 2025.
Alphabet's Q2 2026 revenue hit record $63.3 billion (up 17% year-over-year) and Google Cloud revenue surged 82% to $24.8 billion, fueled by a $514 billion AI data center order backlog, showing why Berkshire sees artificial intelligence as central to future returns.
What happened
New Berkshire Hathaway CEO Greg Abel has quadrupled the conglomerate's stake in Alphabet (now worth $36.6 billion, or 10.2% of the portfolio) since early 2026, while Apple remains the largest holding at 19.5%. Together, these two AI-focused stocks account for nearly 30% of Berkshire's entire $356 billion stock portfolio.
Why it matters
Abel is maintaining Buffett's investment philosophy but showing an aggressive pivot toward artificial intelligence. Alphabet's Google Search generated record $63.3 billion in revenue in Q2 2026 (up 17% year-over-year) and Google Cloud revenue exploded 82% to $24.8 billion, driven by a $514 billion AI data center order backlog. Apple is distributing AI to over 2.5 billion active devices worldwide while investing comparatively less in infrastructure than peers. For investors, this signals Berkshire views AI as central to long-term value creation.
What to watch
Alphabet stock has soared 70% over the past year; the body notes there could be more upside if search and cloud businesses maintain current growth rates. Apple's AI integration strategy and ability to leverage its massive device installed base will be critical to whether Berkshire's 19.5% weighting in the company continues to pay off.
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Greg Abel's early moves as Berkshire's CEO reveal a deliberate shift toward artificial intelligence within Buffett's core investment framework of steady growth, reliable earnings, and experienced management. Rather than abandoning Buffett's philosophy, Abel has applied it to the AI revolution: both Alphabet and Apple represent established trillion-dollar tech companies with proven business models adapting to AI demand. Alphabet's position is particularly striking—the company has deployed new AI features like AI Overviews and AI Mode (which has over 1 billion monthly active users) to defend Google Search's advertising moat while simultaneously benefiting from massive cloud infrastructure demand. Google Cloud's $514 billion order backlog and 82% revenue growth signal that the infrastructure layer of AI is generating enormous near-term cash flow. Apple's strategy differs in degree but not kind: by designing AI chips in-house and distributing features to 2.5 billion devices, it is capturing AI demand with lower capital expenditure than peers. Abel's quadrupling of Alphabet since early 2026 and retention of Apple as the largest holding suggest he views these two companies as the primary vehicles through which AI will create shareholder value over the next decade.
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