Berkshire Hathaway Eyes Nvidia as Next Big Tech Investment

Nvidia's dominance in the chip market has caught the attention of Berkshire Hathaway's new CEO, Greg Abel. The tech giant relies on Nvidia's artificial intelligence chips to develop next-gen products and services. This reliance is likely a major reason why Nvidia's growth rate was still exceptional at 85% in its April quarter.

Warren Buffett claims to have initiated the recent position in Alphabet, but Abel has added to it. This raises questions about whether another top tech giant might end up in Berkshire's portfolio. Could Nvidia be the next big tech stock that Berkshire invests in?

The complexity of Nvidia's business could be a deterrent for investors who are not familiar with its chips and how they work. However, this is not necessarily a problem for Abel, who is known to value companies with strong competitive advantages, or moats.