Berkshire Hathaway's AI Playthrough Apple, Alphabet and Moody's

Berkshire Hathaway's exposure to artificial intelligence (AI) is through its investments in Apple, Alphabet, and Moody's. These stocks make up a significant portion of Berkshire's $361 billion portfolio, but they have underperformed Nvidia over the past five years.

Apple accounts for 20.2% of Berkshire's portfolio and generates most of its revenue from hardware sales. However, it is using AI to increase the stickiness of its ecosystem and subscription-based services. Alphabet, which makes up 7.4% of Berkshire's portfolio, provides infrastructure for AI applications through its Google Cloud Platform and custom chips.

Moody's, Berkshire's ninth-largest holding at 3.4%, uses AI to upgrade its economic forecasts and credit rating services. While these stocks are exposed to the AI market, they are not comparable to Nvidia due to their slower growth rates and higher valuations. Nvidia generates 93% of its revenue from data center chips used for AI training.

Berkshire's avoidance of Nvidia can be attributed to Warren Buffett's preference for understanding businesses before investing. His successor, Greg Abel, also favors Apple and Alphabet over Nvidia due to their less exposure to the semiconductor sector's boom-and-bust cycles.