Billionaire Warren Buffett Just Made a Massive $4 Billion Investment in This Artificial Intelligence (AI) Stock

Core Viewpoint - Berkshire Hathaway is increasing its investment in Alphabet, indicating confidence in the company's growth potential, particularly in the AI sector [2][12] Company Developments - Berkshire Hathaway sold Apple stock, raising its cash position to nearly $400 billion, while acquiring over $4 billion in Alphabet stock [2] - Alphabet's Gemini chatbot has gained significant traction, reaching 650 million monthly active users, which has positively impacted Google Search revenue [4][5] Financial Performance - Google Search revenue grew approximately 15% year-over-year to $56 billion, showcasing strong profit margins [4] - Alphabet's total Google subscriptions reached $12.8 billion last quarter, growing 21% year-over-year [7] - Google Cloud generated $15 billion in revenue last quarter, with a growth rate of 34% year-over-year, positioning it well for future demand in AI [8][9] Market Position - Alphabet is gaining market share in the AI chatbot space and possesses a robust infrastructure in computer chips and data centers, providing a competitive edge over startups [5] - The company's stock price has risen from around $200 to nearly $290, yet it maintains a trailing price-to-earnings ratio of 28, which is below the S&P 500 average [11][12]