What AI companies did Warren Buffett invest 3987 billion in

Coin World News Report:
Although Warren Buffett’s pursuit of the latest trends in the stock market is not obvious, it can be seen from Berkshire Hathaway’s investment portfolio that many stocks held by the company benefit from artificial intelligence.
Since 1965, Buffett has been leading Berkshire Hathaway Holding Company. He likes to invest in companies with stable growth, reliable profitability, and strong management teams, and implements shareholder-friendly measures such as dividend payments and stock buyback plans.
This strategy is indeed effective. From 1965 to 2023, Berkshire’s return rate reached a staggering 4,384,748%, equivalent to a compound annual return rate of 19.8%, nearly twice the 10.2% annual return rate of the S&P 500 index during the same period.
In terms of dollars, a $1,000 investment in Berkshire Hathaway stock in 1965 would have grown to over $43 million, while the same investment in the S&P 500 index would be worth only $312,333 with dividend reinvestment.
Buffett is not an investor who chases the latest trends in the stock market, so you won’t see him heavily invested in popular artificial intelligence stocks.
However, three stocks currently held by Berkshire are benefiting greatly from artificial intelligence, accounting for over 45% of Berkshire’s publicly traded securities portfolio, with a total value of $398.7 billion.
In the first quarter of the fiscal year 2025 ending on April 30, Snowflake’s product revenue reached $789.6 million, a 34% increase year-on-year. At first glance, this is a strong growth rate, but it has slowed down compared to previous quarters.
Although Snowflake continues to invest heavily in growth initiatives such as marketing and research and development, the speed of acquiring new customers has slowed down, and existing customers are expanding their consumption at a slower pace.
Berkshire Hathaway bought shares of Snowflake when the data cloud professional company went public in 2020, so the price per share may be around $120.
In 2021, the stock price of the company soared to a high of $392, but has since fallen 63% from this level, and is currently priced at $142. Unfortunately, due to the company’s growth slowdown, the stock price still seems quite expensive, so investors may want to avoid Berkshire’s selection.
02.
Amazon: Accounts for 0.5% of Berkshire Hathaway’s investment portfolio
Berkshire bought shares of Amazon (AMZN1.22%) in 2019, and Buffett has expressed regret for not discovering this opportunity earlier. Amazon was originally an e-commerce company, but later expanded into cloud computing, streaming media, and digital advertising, and now into the field of artificial intelligence.
Its Amazon Web Services (AWS) cloud computing division has designed its own data center chips, which can reduce the cost for AI developers using these chips by up to 50% compared to infrastructure using Nvidia chips.
In addition, Amazon’s Bedrock platform provides developers with a ready-made library of LLMs, which come from some of the industry’s leading startups. In addition, Amazon has independently developed an LLM series called Titan.
Essentially, AWS aims to become the preferred destination for developers who intend to create their own AI applications. Various predictions on Wall Street indicate that artificial intelligence could add $7 trillion to $20 trillion in revenue to the global economy over the next decade, potentially making it Amazon’s biggest opportunity ever.
Berkshire Hathaway holds $2 billion worth of Amazon shares, accounting for only 0.5% of the conglomerate’s stock portfolio.
In the long run, artificial intelligence may drive significant growth for Amazon. Therefore, if Buffett previously only wished for a larger position in this stock, he may now regret not increasing it earlier after the new chapter of AI begins.
03.
Apple: Accounts for 44.5% of Berkshire Hathaway’s investment portfolio
Apple (AAPL2.16%) is the largest holding of Berkshire Hathaway to date. The conglomerate has accumulated stocks worth about $38 billion since 2016, and its current holdings are valued at $177.6 billion.
Apple is committed to producing the world’s most popular electronic devices, including iPhone, iPad, Apple Watch, AirPods, and Mac computers.
The company is entering the field of artificial intelligence through its new Apple Intelligence software, which will be released in September with the iOS 18 operating system.
The software was developed in collaboration with OpenAI and will change the user experience of Apple devices. Siri voice assistant will leverage the capabilities of ChatGPT, and similarly, its writing tools such as Notes, Mail, and iMessage will also utilize ChatGPT to help users create content quickly.
There are over 2.2 billion active Apple devices worldwide, which means Apple could soon become the largest company distributing AI technology to consumers.
The upcoming iPhone 16, expected to be equipped with powerful new chips capable of handling AI workloads on the device, could trigger a significant upgrade cycle.
Apple meets all of Buffett’s stock selection criteria. Since Berkshire’s initial investment in 2016, the company has steadily grown, remained profitable, and has a strong leader in CEO Tim Cook. It has also returned a significant amount of money to shareholders through dividends and stock buybacks.
In fact, Apple has just announced a $110 billion share buyback plan, the largest in U.S. corporate history.