Warren Buffett Has $65.8 Billion Invested in These 4 Artificial Intelligence (AI) Stocks. Here's the Best of the Bunch.
Berkshire's direct AI positions include consumer electronics maker Apple and e-commerce behemoth Amazon.
Buffett also has exposure to Cisco and Qualcomm through his portfolio at New England Asset Management.
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Warren Buffett did not build Berkshire Hathaway into a market-beating financial services powerhouse by investing in high-risk growth stocks. As a value investor, Buffett is a master at identifying quality businesses that have been discounted by the broader market.
For these reasons, technology stocks have seldom earned a spot in Buffett's portfolio. And with the stock market trading at all-time highs and valuations -- particularly in the technology sector -- becoming ever-more stretched, it's surprising to see that Buffett has any exposure to artificial intelligence (AI) whatsoever.
Let's explore four AI stocks that have garnered interest from Buffett and his team. From there, I'll detail how the Oracle of Omaha has been investing in these companies, and reveal which one I see as the top pick.
Berkshire Hathaway's portfolio holds a number of stocks in the financial services and consumer defensive industries. Many of these companies such as Coca-Cola, , Visa, Mastercard, Capital One, and Constellation Brands stand to benefit from rising investment in AI, but none provides direct exposure to the upside artificial intelligence presents.
The only two direct AI investments held in Berkshire Hathaway's portfolio are Apple and Amazon (NASDAQ: AMZN). Despite trimming his exposure to the iPhone maker considerably over the past year, Apple remains Berkshire's largest position -- currently worth about $63.6 billion. Amazon is a considerably smaller position, worth roughly $2.2 billion at current market prices.
Through a series of acquisitions, New England Asset Management (NEAM) became a subsidiary of Berkshire in the late 1990s. While Buffett does not necessarily influence the decision-making over at NEAM, stocks that are owned by the fund are technically a part of his portfolio, too.
NEAM owns a number of AI stocks, but the two that stuck out to me are Qualcomm and Cisco Systems. To be fair, these are relatively small positions -- totaling only $15 million between the two of them.
As these trends illustrate, Cisco and Qualcomm trade at significant discounts to other chip and AI infrastructure players on a forward price-to-earnings (P/E) basis -- potentially signaling a good value relative to their peers in the AI landscape.
As I alluded to, Berkshire has been reducing its exposure to Apple for quite some time. According to 13F filings, Berkshire has sold more than 489 million shares of Apple since the first quarter of 2024 -- trimming its position by 62%. By contrast, Berkshire's Amazon position has remained unchanged.
During the first quarter, NEAM reduced its Cisco position by 12% and increased its exposure to Qualcomm by 1%.
I wouldn't read too much into NEAM's decisions to trim Cisco and add to Qualcomm. Both positions are small relative to NEAM's overall portfolio size.
Moreover, while Cisco and Qualcomm each have the opportunity to benefit from AI, I think their upside is limited compared to other opportunities. The reason I say that is because their respective businesses are more specialized and niche; therefore, their growth prospects may not be as attractive as other multiplatform companies such as Nvidia or Broadcom.
Regarding Apple, Buffett's decision to sell when he did looks like a genius move in hindsight. For more than a year now, Apple's foray into the AI landscape has been quite muted. While other tech titans such as Microsoft, Alphabet, Oracle, and Amazon have been striking strategic partnerships left and right with OpenAI and Anthropic and making splashy acquisitions, Apple has largely remained on the sidelines -- calling into question how robust the company's future growth really is.
Despite its relatively small exposure, I see Berkshire's investment in Amazon as its best AI stock overall. In addition to Buffett, Amazon has earned spots in Bill Ackman's Pershing Square Portfolio and is a core AI position in Cathie Wood's exchange-traded funds (ETF) over at Ark Invest.
Amazon has already been leveraging AI in its cloud services platform -- Amazon Web Services (AWS) -- and is currently integrating AI-powered robotics to help bring a new wave of efficiency to the company's warehouse and fulfillment center logistics platforms.
I think Amazon has only scratched the surface in how AI can transform its ecosystem, and I see the stock as a compelling value for investors with a long-term time horizon, such as Buffett.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Berkshire Hathaway, Cisco Systems, Mastercard, Microsoft, Moody's, Nvidia, Oracle, Qualcomm, and Visa. The Motley Fool recommends Broadcom, Capital One Financial, and Constellation Brands and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Warren Buffett Has $65.8 Billion Invested in These 4 Artificial Intelligence (AI) Stocks. Here's the Best of the Bunch. was originally published by The Motley Fool
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