Berkshire Hathaway's AI Exposures: Why It Doesn't Own Nvidia

Berkshire Hathaway's $361 billion portfolio includes investments in dozens of companies, but it surprisingly doesn't hold a single share of Nvidia, the world's top AI chipmaker. However, Berkshire does own Apple, Alphabet, and Moody's, which are exposed to the AI market.

Apple is Berkshire's largest holding, making up 20.2% of its portfolio, while Alphabet accounts for 7.4%. These companies use AI in various ways: Apple develops custom chips for edge AI models, Alphabet provides infrastructure for AI applications through Google Cloud Platform, and Moody's uses AI to upgrade economic forecasts and credit rating services.

Although these stocks have generated significant returns over the past five years - 113% for Apple, 138% for Alphabet, and 35% for Moody's - they still underperform Nvidia, which has seen a total return of 912% during that period. Nvidia dominates the general-purpose AI training market and is expected to grow its revenue and EPS at CAGRs of 59% from fiscal 2026 to fiscal 2029.

Berkshire's avoidance of Nvidia is attributed to Warren Buffett's preference for understanding businesses before investing, as well as his successor Greg Abel's focus on more stable growth opportunities in energy infrastructure stocks.