Berkshire Investment Pushes Alphabet Stock to Record High
Alphabet shares surged nearly 6% to a record high after Berkshire Hathaway revealed a multibillion-dollar stake. The purchase marks one of Berkshire’s final major investments under Warren Buffett and signals rare confidence in a tech company from the historically tech-averse conglomerate.
Moreover, the move arrives at a time when market sentiment toward technology has become more cautious due to concerns over an AI-driven valuation bubble. Yet Alphabet continues to stand out as investors look for stability and growth.
Alphabet Outperforms Rivals Amid AI Market Uncertainty
Alphabet has outshone the other members of the “Magnificent Seven” this quarter, gaining nearly 14% and posting a 46% rise for the year. Meanwhile, other leading tech stocks have stalled, even as Nvidia and Microsoft remain industry favorites. Although AI frenzy has pushed prices up across the sector, returns from heavy data-center investments remain unclear.
Still, analysts view Alphabet as a strong AI contender because of its infrastructure scale, rapid adoption of AI-powered search, and an advertising business that can finance further expansion. Additionally, Google Cloud has become a growth driver following recent earnings momentum.
Buffett Legacy and Berkshire Strategy
Berkshire’s position in Alphabet could also resolve long-standing regret over missing Google in its early years, especially as leadership transitions toward Greg Abel near the end of 2025. Early trading suggests Alphabet may add roughly $180 billion to its market value if gains continue.
Meanwhile, Berkshire has been a net seller in recent quarters, trimming major positions and growing its cash reserves to a record $381.7 billion. Although some investors believe this reflects caution toward high valuations, Berkshire’s portfolio remains heavily concentrated in financial services, even as selective big-tech bets begin to emerge.
