Mikkel Rosenvold
3 days ago

Warren Buffett's Hidden AI Bets: Three Stocks Revealed

Discover the surprising AI investments in Warren Buffett's "secret" portfolio, revealing his strategic moves in the tech industry. These three stocks could shape the future of AI and offer insights into the Oracle of Omaha's forward-thinking approach.
3D CGI. Microsoft Corporation Holding Signage Logo on Top of Glass Building. Workplace of Technology Internet Company Office Headquarter. — Photo by askarimullin
3D CGI. Microsoft Corporation Holding Signage Logo on Top of Glass Building. Workplace of Technology Internet Company Office Headquarter. — Photo by askarimullin

Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has long been celebrated for his unparalleled investment acumen. Known as the "Oracle of Omaha," Buffett has steered his company's Class A shares (BRK.A) to an astronomical return of nearly 5,000,000% since taking over as CEO, dwarfing the S&P 500's respectable gain of over 35,000%. While most eyes are on Berkshire's well-known $379 billion portfolio, there's a lesser-known $646 million portfolio managed by New England Asset Management (NEAM) that contains intriguing surprises, including three notable AI stocks.

In a recent article from The Motley Fool, it was revealed that Buffett's secret portfolio includes Alphabet, Broadcom, and Microsoft, each of which is making significant strides in artificial intelligence.

First on the list is Alphabet (GOOGL), the parent company of Google, YouTube, Waymo, and Google Cloud. NEAM held 10,500 Class A shares of Alphabet as of the end of March. The Motley Fool article highlights that "virtually all aspects of Alphabet's operating segments utilize AI," with Google Cloud's generative AI solutions playing a pivotal role. This division achieved profitability in 2023, a milestone that underscores its importance to Alphabet's future. Google continues to dominate global search with a 90% market share, while YouTube, with its 2.5 billion monthly active users, strengthens its ad-driven revenue streams.

Next is Broadcom (AVGO), a semiconductor giant with a significant focus on AI technology. According to The Motley Fool, NEAM held 3,970 shares of Broadcom, valued at nearly $5.3 million. Broadcom's impressive Jericho3-AI chip, capable of connecting up to 32,000 GPUs, is designed to enhance the processing power required for training large language models and operating high-compute data centers. The ongoing demand for 5G technology and smartphone upgrades further solidifies Broadcom's position in the market.

Finally, Microsoft (MSFT), the world's largest public company at the time of writing, rounds out the trio. NEAM's holdings included 13,210 shares of Microsoft, worth close to $5.6 million. The Motley Fool reports that Microsoft has heavily invested in OpenAI, the company behind ChatGPT, and is developing its own AI chips, the Azure Maia 100. Microsoft's cloud services, led by Azure, consistently exhibit strong growth, with constant-currency sales growth hovering around 30%. With $80 billion in cash reserves, Microsoft is well-positioned to continue its AI-driven innovations. To read the full details of Buffett's hidden AI bets, check out the original article on The Motley Fool here.

Disclaimer

The information provided by this Site is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

More News

5 hours ago Federal Reserve Sees Progress on Inflation, Adjusts Rate Cut Expectations The Federal Reserve has adjusted its forecast for rate cuts this year, citing persistent inflation despite recent progress. High borrowing costs are expected to linger, impacting consumers and the broader economy.
6 hours ago Bitcoin Holds Steady as Fed Maintains Interest Rates: A Sign of Economic Caution In a cautious move, the U.S. Federal Reserve opted to keep interest rates unchanged, causing Bitcoin to hold its ground. Read more about the economic implications and market responses here: "The Committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year."
9 hours ago High-Stakes Showdown: Tesla Shareholders Decide on Elon Musk’s $56B Pay Package Tesla shareholders are set to cast their votes on Elon Musk's controversial $56 billion compensation package, a decision that could have far-reaching consequences for the company.
12 hours ago USDMXN: A Golden Opportunity USDMXN: A Golden Opportunity Amid Mexican Election Sell-Off, Says Steno Research Analyst
1 day ago EU's New Tariffs on Chinese EVs Hit Tesla and BYD Stocks! Tesla (TSLA) and BYD (1211) Stocks Plummet After EU Tariff Announcement
1 day ago Macro Mondays: Escaping the TRAP of Sideways Markets Andreas Steno, Mikkel Rosenvold And Mads Eberhardt talk macro and crypto
1 day ago EU launches trade war with China In a bold move that has sent ripples through global markets, the European Union has effectively launched a trade war against China. This decision, announced just three days after the European Parliament elections, raises significant questions about the influence and timing of the EU’s legislative body.
1 day ago July Bloodbath: Metals Set for Major Crash? Brace yourselves for a tumultuous July in the metals market! Industry experts are sounding the alarm as cluster risks in metals like gold, silver, and copper threaten a significant downturn. Here's why July could spell disaster for metal investors.
1 day ago 5 Stories To Invest in for Emerging Markets 5 Stories that might interest you if you're into investing in Emerging Markets