Warren Buffett’s Berkshire Hathaway Bets $850M on Nucor as AI Infrastructure Demand Lifts Steel Giant Amid Industry Struggles, Stock Ranks 477th in $0.2B Trading Volume

On August 19, 2025, Nucor (NUE) rose 0.87% with a trading volume of $0.2 billion, ranking 477th among stocks. The move followed disclosures by Warren Buffett’s Berkshire Hathaway in its Q2 13F filing, revealing a $850 million stake in Nucor acquired in Q1 2025. The investment highlights Nucor’s strategic positioning as a supplier of steel components for data centers, a critical infrastructure for AI development, despite broader steel industry challenges like rising production costs and margin compression. Analysts note that Nucor’s exposure to AI-driven demand and potential benefits from U.S. steel tariffs could support its long-term outlook.

Berkshire’s purchase of Nucor aligns with its recent focus on U.S.-based commodity companies with growth potential. While Nucor’s earnings have declined year-to-date due to cost pressures, its forward P/E ratio of 17.5 remains elevated. The market’s anticipation of tariff-driven pricing power and AI sector tailwinds may outweigh near-term operational headwinds. However, the stock’s valuation suggests investors are factoring in a premium for its role in emerging technology infrastructure.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a 0.98% average 1-day return, with a total return of 31.52% over 365 days. This indicates modest short-term momentum capture but underscores the risks of timing and market volatility inherent in such an approach.