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22% of Warren Buffett's $285 Billion Portfolio Is Invested in These 2 "Magnificent Seven" Artificial Intelligence (AI) Stocks
The Motley Foolยท2025-07-02 08:40

Core Insights - Berkshire Hathaway, led by Warren Buffett, has shifted its investment strategy towards the tech sector, particularly in artificial intelligence (AI) [1][2] - As of now, two major AI companies represent approximately 22% of Berkshire's $279 billion public stock holdings [2] Group 1: Apple Inc. - Apple stock constitutes 21.2% of Berkshire's portfolio, making it the largest holding [5] - Berkshire has reduced its position in Apple significantly, selling 605 million shares over the past year and 10 million shares in Q4 2023, down from a peak of 915 million shares [4][5] - Concerns have arisen regarding Apple's performance in the AI sector, especially compared to competitors like Nvidia and Microsoft, which have seen substantial demand for their AI products [7] - Apple's iPhone remains the primary revenue driver, but the introduction of the Apple Intelligence software has not significantly impacted sales, particularly in China where regulatory challenges hindered the iPhone 16 launch [8][9] Group 2: Amazon.com Inc. - Amazon represents a small portion of Berkshire's portfolio at just 0.7%, but it holds significant potential due to its leading position in the cloud services market with a 30% share [10] - The company plans to invest over $100 billion in its AI platform in 2025, launching numerous features to cater to a wide range of clients [11] - Amazon's CEO has emphasized the ongoing shift from on-premises IT spending to cloud services, positioning the company to benefit from this transition [13] - With its extensive opportunities in AI, Amazon is poised to potentially become the largest company by sales and market cap in the near future [14]