The Motley Fool·2025-06-10 09:12Group 1: Berkshire Hathaway's Portfolio Allocation - Warren Buffett has nearly 23% of Berkshire Hathaway's portfolio invested in two AI stocks: 21.8% in Apple and 0.8% in Amazon [1] Group 2: Apple Investment Thesis - Apple is the global leader in smartphone sales, benefiting from a strong brand moat and significant pricing power [3] - The company aims to monetize its installed base of over 2.35 billion devices through services like iCloud, Apple Care, and subscription products [4] - Apple introduced Apple Intelligence, a suite of AI features, which may eventually be monetized through subscriptions [5] - iPhone sales have been flat over the last six months, partly due to the lack of significant upgrades to Siri [6] - Internal data suggests Apple is behind competitors in developing a ChatGPT competitor, with delays in Siri upgrades [7] - Apple plans to open its AI models to third-party developers, potentially increasing AI-powered applications in the App Store [8] - Wall Street has revised earnings growth estimates for Apple to 6% annually through fiscal 2026, making its current valuation appear expensive [9] Group 3: Amazon Investment Thesis - Amazon holds a strong position in three industries: e-commerce, retail advertising, and cloud computing, with significant market shares [10] - The company is leveraging AI to enhance efficiency and margins in its retail business, with plans to develop around 1,000 generative AI applications [11] - In cloud computing, Amazon has created custom semiconductors for AI and introduced a generative AI development platform called Bedrock [12] - CEO Andy Jassy views AI as a major technological shift, with the AI business having a multibillion-dollar annual revenue run rate [13] - Wall Street estimates Amazon's earnings will grow at 10% annually through 2026, with a current valuation of 35 times earnings, which may be underestimated [14]