While Warren Buffett once famously avoided tech stocks like the plague, the Oracle of Omaha is now going all-in on artificial intelligence. Through Berkshire Hathaway, Buffett has amassed a staggering AI-focused portfolio, with four key stocks representing 34.4% of his $265 billion holdings. Talk about a change of heart.
The billionaire investor’s AI shopping spree includes tech giants Microsoft and Alphabet, semiconductor powerhouse Broadcom, and surprisingly, Domino’s Pizza. Yes, you read that right – pizza. Berkshire holds nearly 19,855 shares of Broadcom, worth approximately $4.5 million, betting big on the company’s AI networking solutions for data centers. CEO Hock Tan’s projection of $60-90 billion in AI chip orders over three years probably didn’t hurt either. Berkshire’s long-term investment approach has delivered an incredible 5,700,000% return for Class A shareholders.
From pizza to semiconductors, Buffett’s unconventional AI bets show the Oracle of Omaha isn’t afraid to think outside the tech box.
Microsoft and Alphabet form the backbone of Berkshire’s AI strategy, representing billions in investments. NEAM still maintains 5,195 Class A shares in Alphabet despite consistent quarterly sales. These aren’t just tech companies anymore – they’re AI juggernauts. Microsoft’s tentacles reach into cloud services, productivity software, and AI tools, while Alphabet keeps pushing boundaries with DeepMind and Google Cloud AI. The companies are revolutionizing healthcare with AI diagnostic systems that can detect diseases faster than human doctors.
Then there’s Domino’s Pizza, the unexpected AI player. They’re using something called “Voice of the Pizza” to analyze customer feedback. Pretty soon, they’ll probably have robots tossing dough.
Amazon rounds out the portfolio with its 0.7% stake, flexing its AI muscles with Rufus, the shopping assistant, and warehouse automation that would make sci-fi writers jealous.
Berkshire’s dramatic pivot toward AI stocks marks a significant departure from Buffett’s traditional value investing approach. The 2024 year-end buying spree amid market volatility shows the company isn’t just dipping its toes in the AI waters – it’s doing a full cannonball.
Some of these investments come through indirect channels, like General Re’s New England Asset Management acquisition, but the message is clear: Buffett believes AI isn’t just the future – it’s the present. And he’s putting his billions where his mouth is.
