Berkshire Hathaway Bets Big on AI Boom Leaders Apple and Alphabet

Greg Abel, successor to Warren Buffett as CEO of Berkshire Hathaway, is continuing the conglomerate's investment philosophy unchanged. Two stocks that are key components of Berkshire Hathaway's portfolio and well-positioned to capitalize on the AI boom over the long run are Apple and Alphabet.

Berkshire Hathaway owns 34.7% of its portfolio in these two companies, with Apple accounting for 22.04%. Buffett has praised Apple as 'probably the best business in the world' due to its consistent earnings and cash flows from popular devices like the iPhone.

The iPhone functions like a subscription that hundreds of millions of people renew every few years, thanks to its unique features and high switching costs. Apple also boasts significant growth opportunities, including integrating AI features into its devices and expanding its high-margin services segment.

Berkshire Hathaway first initiated a position in Alphabet in the third quarter of 2025, and since then has doubled down on the company. Alphabet's revenue and earnings growth have been excellent in recent quarters, especially in its cloud computing segment, which is contributing meaningfully to Google Cloud's strength.