Buffett's AI Wager: 22% of $282B Portfolio in Tech Giants

Published Date : 08/06/2025 

Warren Buffett's Berkshire Hathaway has significantly invested in tech giants like Apple and Amazon, with 22% of its $282 billion portfolio dedicated to artificial intelligence (AI). Despite a reduction in Apple shares, the firm remains confident in the company's long-term potential. 

As Warren Buffett prepares to step down as CEO of Berkshire Hathaway at the end of this year, the legendary investor leaves behind a company with an extensive and diverse portfolio. Since taking the helm in 1965, Buffett transformed Berkshire into one of the world’s largest and most successful conglomerates. While Berkshire Hathaway has long been known for its value investing strategy, the firm’s recent moves into technology stocks reflect a shift towards embracing new growth opportunities, particularly in the rapidly expanding field of artificial intelligence (AI). Two of the biggest players in this space—Apple and Amazon—are now central to the company’s investment strategy.

Apple (NASDAQ: AAPL) continues to be Berkshire Hathaway’s largest stock holding, representing 21.6% of its $282 billion portfolio. With a market capitalization of $3 trillion, Apple ranks as the world’s third-largest company, trailing only Microsoft and Nvidia. Despite a reduction of over 600 million shares by Berkshire last year, Apple remains a cornerstone of the investment conglomerate’s strategy.

Buffett’s decision to trim Berkshire’s position in Apple is seen by some as a reflection of growing concerns over the company’s performance in certain areas, particularly its AI capabilities. While Apple is a leader in mobile hardware, it has faced difficulties in advancing its AI platform, with reports of delays in the development of its next-generation Siri software. Additionally, challenges in the Chinese market have hindered the rollout of Apple’s AI software, with domestic brands like Huawei continuing to dominate.

Despite these setbacks, Apple retains its place as the top holding in Berkshire’s portfolio, a testament to Buffett’s ongoing confidence in the company’s long-term potential. As AI continues to shape the tech industry, Apple’s vast resources and consumer reach may still allow it to capitalize on future opportunities, making it a key player in the AI space.

Unlike Apple, Amazon (NASDAQ: AMZN) makes up a smaller portion of Berkshire Hathaway’s stock portfolio, but its presence in the company’s holdings is significant. In fact, Buffett has admitted that he did not make the initial purchase of Amazon stock, crediting one of Berkshire’s portfolio managers, Todd Combs or Ted Weschler, for pushing the button on the investment. Despite this, Buffett has acknowledged that he made a mistake by not buying Amazon earlier, as the e-commerce giant has proven to be far more than just an online retailer.

A major component of Amazon’s future growth lies in its cloud computing division, Amazon Web Services (AWS), which is a key player in the generative AI revolution. With AWS holding a dominant 30% share of the global cloud market, the company is positioned to benefit greatly from the increasing demand for AI-driven solutions. AWS is already home to a range of generative AI tools, offering everything from customizable large language models (LLMs) for enterprise clients to ready-made programs for small businesses.

CEO Andy Jassy believes AWS could become an even more lucrative business as the proliferation of generative AI leads to an increasing reliance on cloud-based infrastructure. “Before this generation of AI, we thought AWS had the chance to ultimately be a multi-hundred-billion dollar revenue run rate business,” Jassy said on a recent earnings call. “We now think it could be even larger.”

Given the growing importance of AI in Amazon’s business strategy, it will be interesting to see whether Berkshire Hathaway increases its stake in Amazon once Buffett steps down. AWS is already a significant contributor to Amazon’s financials, accounting for 63% of the company’s operating income, and its role in the AI market is likely to only expand in the years to come. 

Frequently Asked Questions (FAQS): 

Q: What percentage of Berkshire Hathaway’s portfolio is invested in tech companies like Apple and Amazon?

A: 22% of Berkshire Hathaway’s $282 billion portfolio is invested in tech giants like Apple and Amazon.

Q: Why did Warren Buffett reduce Berkshire Hathaway’s holdings in Apple?

A: Buffett’s decision to trim Berkshire’s position in Apple is seen as a reflection of growing concerns over the company’s performance in certain areas, particularly its AI capabilities.

Q: What is the significance of Amazon Web Services (AWS) in the AI market?

A: AWS is a key player in the generative AI revolution, holding a dominant 30% share of the global cloud market. It offers a range of generative AI tools and is positioned to benefit greatly from the increasing demand for AI-driven solutions.

Q: How does AWS contribute to Amazon’s financials?

A: AWS is already a significant contributor to Amazon’s financials, accounting for 63% of the company’s operating income.

Q: What is Berkshire Hathaway’s future strategy with Amazon after Warren Buffett’s retirement?

A: Given the growing importance of AI in Amazon’s business strategy, it will be interesting to see whether Berkshire Hathaway increases its stake in Amazon once Buffett steps down. 

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