Warren Buffett's Berkshire Hathaway Amasses $67 Billion in Top AI Stock

Warren Buffett has served as the CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) For many years now, his ability to allocate capital within the company has been remarkable, boasting an impressive compound annual growth rate of around 20%. However, over the last few years, a specific corporation has generated exceptional returns, significantly boosting the value of the Omaha-based conglomerate.

Berkshire Hathaway possesses an extensive publicly traded equity portfolio. Considering Buffett’s past tendency to steer clear of tech frontrunners, it could come as a shock that his company holds $67 billion worth of these stocks. artificial intelligence (AI)-related stock (as of April 1). Despite having surged 617% over the last decade, it is presently being traded at a level that is 14% lower than its highest point.

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Losing the AI race

In 2024, Berkshire concluded the year with a $334 billion stake in cash and Treasuries. The leading holding for Buffett was, Apple (NASDAQ: AAPL) It was reduced considerably nonetheless, it remains the biggest asset in the portfolio.

Apple could be more deeply involved in artificial intelligence than most people recognize. The firm unveiled Apple Intelligence back in June and rolled out the official launch in October 2024. Recent iterations of iPhones, iPads, and Macs come equipped with AI-enhanced features like writing aids, editing tools, photo generation, and custom emoji creation. Following Apple’s usual approach, privacy and security remain at the core of this latest technological initiative.

Nevertheless, concerns persist about Apple lagging in the artificial intelligence competition. The anticipated rise of Apple Intelligence was meant to enhance iPhone sales, which represent the company’s flagship offering. However, during the fiscal 2025 first-quarter report,iPhone revenues showed a decline of 1% compared to the previous year.

In the most recent earnings call, CEO Tim Cook stated that iPhone 16 series sales performed stronger in regions with access to Apple Intelligent technology. Nevertheless, this has not boosted demand as much as various analysts had anticipated.

Apple has recently disclosed that the much-anticipated enhancement of Siri will be pushed back. There were expectations for the digital aide to offer a more tailored and individualized interaction with users, utilizing information gleaned from different applications to generate thoughtful answers. Users might have to wait until 2026 before seeing this improvement.

The perspectives from both sides of the debate

Critics make a fair argument here. When Apple finally unveiled Siri intelligence in June, they were significantly behind their technological counterparts—nearly 19 months had passed since OpenAI launched ChatGTP globally in November 2022. Given that Apple boasts immense financial backing along with top-tier personnel at every turn, one can’t help but wonder about what caused such an extensive delay for them entering this arena.

The launch has similarly fallen short of expectations. This situation leads many to wonder just how unprepared the company was for the surge in artificial intelligence technology.

I generally lean towards a more positive perspective. Although I concur that the present capabilities of AI aren’t revolutionary, openly disclosing the postponement of the Siri update and facing this setback head-on is the right decision. Apple has built its brand around delivering exceptional ease-of-use, ensuring their products and services function smoothly. Releasing a faulty and unreliable version of Siri could damage this carefully cultivated image.

Apple has the potential to fulfill its commitment and introduce an artificial intelligence-driven Siri by 2026. With nearly 2.4 billion active devices worldwide, Apple holds a favorable stance, and people might probably overlook previous missteps.

Nevertheless, Apple is currently trading at a price-to-earnings ratio Of the 30, I don't think potential investors should purchase the stock at this moment, despite Buffett still being a significant stakeholder.

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Neil Patel has no holdings in any of the aforementioned stocks. The Motley Fool holds positions in and recommends Apple and Berkshire Hathaway. The organization has a disclosure policy .