Berkshire Hathaway Has 10% of Its $358 Billion Portfolio Invested in 1 AI Hyperscaler Whose Stock Is Up 70% in 1 Year

Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) has built a $36.6 billion position in Alphabet (GOOG, GOOGL), now the conglomerate's third-largest holding and representing roughly 10% of its $358 billion portfolio. Buffett initiated the stake last year, backing the company's AI infrastructure build-out even as heavy capital expenditures have pushed free cash flow into negative territory.

Alphabet shares have surged 70% over the past 12 months, yet the stock still trades at a price-to-earnings ratio 34% below the S&P 500 average. The valuation discount persists despite Alphabet's position as an AI hyperscaler investing heavily in cloud infrastructure and large language models.

The stake marks a notable shift for Berkshire, which has historically avoided technology investments outside of Apple. The $36.6 billion allocation underscores confidence in Alphabet's ability to monetize AI investments after absorbing near-term margin compression from capital spending.