Buffett's Berkshire Bets on AI Future as Legacy Meets Tech-Centric Shift

Warren Buffett's Berkshire Hathaway has made a bold foray into the technology sector, acquiring a $4.3 billion stake in Alphabet Inc., the parent company of Google, as revealed in its third-quarter 2025 13F regulatory filing. The move marks a departure from Buffett's traditional value investing approach, which has historically favored industries like insurance, banking, and consumer goods. Alphabet now ranks as Berkshire's 10th-largest equity holding, with 17.85 million shares acquired at an average price of $243 per share.

The investment in Alphabet, a tech giant with a $3.4 trillion market capitalization, aligns with the broader AI-driven market rally. Alphabet's stock has surged 46% in 2025, driven by its leadership in cloud computing and advertising, as well as its advancements in artificial intelligence. This shift appears to be managed by Buffett's handpicked investment team-Todd Combs and Ted Weschler-who have increasingly embraced technology names in recent years.

Simultaneously, Berkshire continued its aggressive reduction of its Apple Inc. position, trimming its stake by 15% in the third quarter to 238.2 million shares, valued at $60.7 billion. Despite the reduction, Apple remains Berkshire's largest equity holding, accounting for 22.7% of its portfolio. The company has sold nearly 75% of its original 905 million Apple shares since 2023, raising $12.5 billion in proceeds during the quarter. Analysts attribute the sales to concerns over high valuations in the tech sector, despite Apple's record fiscal 2025 revenue of $416 billion.

The portfolio adjustments come as Buffett prepares to step down as CEO by year-end, with Greg Abel set to inherit a $283 billion investment portfolio. The 95-year-old investor has long expressed skepticism toward tech stocks, famously lamenting missed opportunities in Amazon and Google.

Berkshire's third-quarter activity also included a 6% reduction in its Bank of America stake and the sale of its entire position in homebuilder D.R. Horton. The company increased holdings in Sirius XM and insurer Chubb, while maintaining its long-standing stakes in American Express and Coca-Cola.

The shift in focus raises questions about how the next era of Berkshire's leadership will balance Buffett's value-driven legacy with the tech-centric strategies of his successors. As the AI boom accelerates, investors are watching closely to see if the Omaha-based conglomerate will double down on high-growth opportunities or revert to its traditional sectors.