Warren Buffett's Major Investments in Artificial Intelligence Stocks in 2025

Berkshire Hathaway CEO Warren Buffett, born in Omaha, Nebraska in 1930, is regarded as one of the most successful investors in history. Having trained under Benjamin Graham, who is often referred to as the father of value investing, Buffett has utilized strategies focused on value to achieve remarkable success.

If you had invested $1,000 in Berkshire Hathaway on the day Buffett acquired a controlling interest in the firm and took over as CEO in 1965, your investment would now be worth over $37 million. Such impressive results solidify his reputation as the Oracle of Omaha.

Although Buffett is primarily known for his expertise in value investing, Berkshire Hathaway also has notable growth stocks in its portfolio, particularly in the rapidly evolving field of artificial intelligence (AI). This article examines two key AI stocks that make up approximately 25% of Berkshire's substantial $292 billion investment portfolio.

1. Apple

Apple (AAPL) has consistently been Berkshire's largest portfolio holding for many years. Buffett has openly praised the company, calling Berkshire's stake in Apple a cornerstone of his investment strategy, and he has remarked that Apple might be the best business in the world.

Despite the highly commoditized nature of smartphones, Apple's unmatched brand loyalty and customer base enable it to maintain impressive profit margins on its iPhones. The company captures a significant share of global profits from smartphone sales, underscoring its dominance in the market.

This strong position in mobile hardware allows Apple to not only generate substantial profits but also explore additional revenue channels. The company's thriving mobile business has helped it establish a profitable software and services division.

Leveraging its mobile strengths, Apple has integrated AI into its offerings, making its artificial intelligence software platform a highlight for its iPhone 16 line. This suggests that the company is just beginning to explore AI-related growth prospects.

As it stands, Apple remains Berkshire's largest investment, accounting for around 24% of the portfolio. However, in recent months, Buffett and his analysts have been adjusting their position in the tech giant. Berkshire continues to hold 300 million shares of Apple but has sold over 615 million shares since the fourth quarter of 2023.

This reduction in holdings implies that the firm may be exercising caution concerning the market, indicating that although the AI sector presents vast opportunities, Buffett is remaining true to his value-oriented investment philosophy.

2. Amazon

Berkshire Hathaway began investing in Amazon (AMZN) in the second quarter of 2019, with Buffett expressing regret for not entering the market earlier. He even labeled himself as an "idiot" for delaying this investment.

Currently representing only 0.7% of Berkshire's portfolio, Amazon is a relatively small holding, but it could easily see increased investment in the future.

Amazon has a strong competitive advantage that aligns with Buffett's investment criteria. The company boasts unmatched scale and a robust infrastructure, complemented by a powerful brand presence.

While e-commerce is a major aspect of Amazon's business, its most significant profits stem from its cloud services division—Amazon Web Services (AWS). Over the past decade, AWS has shown remarkable growth, consistently providing high profit margins. Although online retail generates most of Amazon's revenue, it's AWS that significantly contributes to the company’s profitability.

With AWS acting as a critical provider of infrastructure services for AI applications, Amazon is well-positioned to thrive alongside the growth of artificial intelligence. Additionally, the potential impact of AI on Amazon's e-commerce segment could be transformative.

Online retail has traditionally been a low-margin sector due to high operating costs, but advancements in AI and robotics might revolutionize profitability in this area. Innovations in supply chain automation are expected to unlock billions in earnings.

Although Amazon constitutes a smaller portion of Berkshire's portfolio, it remains an attractive AI investment that warrants attention from investors at this time.

Investment, AI, Berkshire