Buffett's $90B AI Stock Bets: Top Picks and Full List

Published Date : 15-06-2025 

Discover the nine AI stocks in Warren Buffett's portfolio, including Apple, Amazon, and more, and find out which one stands out as the best investment. 

Warren Buffett, the legendary investor, has often admitted that he doesn't fully understand artificial intelligence (AI). Despite this, he has invested a staggering $90 billion in nine companies that are heavily focused on AI. Let's dive into the details of these investments and explore which one stands out as the best pick.

Apple, the tech giant, is the largest holding in Berkshire Hathaway's portfolio. Berkshire's stake in Apple is valued at close to $59.3 billion, making up 21% of the total portfolio. Although Buffett reduced the conglomerate's position in Apple last year, it remains a significant holding. AI has been a crucial part of Apple's development strategy for years. However, the company seemed to lag in the generative AI race until the launch of Apple Intelligence in 2024. Despite this, Apple Intelligence hasn't yet sparked the expected super-cycle of iPhone upgrades.

Amazon is another major AI stock in Berkshire's portfolio, though it is a much smaller holding compared to Apple. Berkshire owns around $2.1 billion of Amazon's shares. Interestingly, Buffett didn't make the initial decision to buy Amazon; one of Berkshire's other investment managers, either Todd Combs or Ted Weschler, made the call. Amazon Web Services (AWS), the largest cloud services provider in the world, has benefited significantly from the surge in organizations building and deploying AI models in the cloud. Amazon also uses AI extensively to enhance efficiency and provide more services to customers.

Apple and Amazon are the only AI stocks owned directly by Berkshire Hathaway. The other seven AI stocks are part of Buffett's 'secret portfolio,' managed by New England Asset Management (NEAM), a subsidiary of General Reinsurance, which Berkshire acquired in 1998. NEAM's holdings don't appear in Berkshire Hathaway's regulatory filings, but they are still considered part of Buffett's portfolio.

Among the 'Magnificent Seven' stocks in NEAM's portfolio are Google parent Alphabet and Microsoft. Both companies are major cloud service providers and are profiting from the strong AI tailwind. Alphabet, in particular, has made significant strides with its AI technology, and Microsoft is a leader in AI development, including its collaboration with OpenAI.

NEAM also holds stakes in IBM and Texas Instruments. IBM made headlines with the success of its Watson AI technology, and Texas Instruments, while not a major player in the AI world, produces edge AI products and collaborates with Nvidia on power management and sensing technologies for data centers.

The portfolio also includes three AI chipmakers: Broadcom, NXP Semiconductors, and Qualcomm. Broadcom manufactures AI products, including Ethernet switches designed to accelerate AI workloads and custom AI accelerators. NXP Semiconductors and Qualcomm sell products that support edge AI, making them crucial players in the AI ecosystem.

If you're an income investor, Texas Instruments might be the best pick among Buffett's AI stocks, with a forward dividend yield of 2.73%. Alphabet, with its attractive price-to-earnings-to-growth (PEG) ratio of 1.36, is another strong contender. However, the best all-around pick is likely Amazon. The company is well-positioned to profit from the ongoing shift to cloud computing and has significant growth potential in e-commerce. Amazon is also expanding into new markets, including healthcare, autonomous ride-hailing, and satellite internet services.

In summary, Warren Buffett's $90 billion bet on AI stocks includes a diverse range of companies, from tech giants like Apple and Amazon to specialized chipmakers like Broadcom and NXP Semiconductors. While each stock has its unique strengths, Amazon stands out as the best all-around investment due to its strong growth prospects and strategic positioning in multiple high-growth areas. 

Frequently Asked Questions (FAQS): 

Q: What is Warren Buffett's total investment in AI stocks?

A: Warren Buffett has invested approximately $90 billion in nine companies that are heavily focused on AI.

Q: Which company is the largest holding in Berkshire Hathaway's portfolio?

A: Apple is the largest holding in Berkshire Hathaway's portfolio, with a stake valued at close to $59.3 billion.

Q: What is the significance of NEAM in Buffett's portfolio?

A: NEAM, a subsidiary of General Reinsurance, manages a 'secret portfolio' that includes seven AI stocks not directly held by Berkshire Hathaway.

Q: Which AI stocks are part of NEAM's portfolio?

A: NEAM's portfolio includes Alphabet, Microsoft, IBM, Texas Instruments, Broadcom, NXP Semiconductors, and Qualcomm.

Q: Why is Amazon considered the best all-around AI stock in Buffett's portfolio?

A: Amazon is well-positioned to profit from the shift to cloud computing, has significant growth potential in e-commerce, and is expanding into new markets like healthcare and autonomous ride-hailing. 

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