Prediction: This Will Be the Next AI Stock That Berkshire Hathaway Buys

Core Viewpoint - Berkshire Hathaway, under new CEO Greg Abel, may adopt a more aggressive investment strategy, potentially increasing its exposure to artificial intelligence (AI) stocks [1][3]. Group 1: Current AI Investments - Berkshire already holds stakes in AI-related companies, including Amazon and Alphabet, with Alphabet being added in Q3 2025, contributing significantly to Berkshire's profits [3][5]. - Amazon represents a 0.8% stake in Berkshire's portfolio, with 10 million shares owned, indicating potential for increased investment given its strong growth prospects [5][12]. Group 2: Amazon's Performance - Amazon's net sales rose 13% year-over-year to $180 billion, with notable growth in Amazon Web Services (AWS) and advertising services, which have higher operating margins compared to other business units [6][7]. - AWS accounted for 66% of Amazon's total operating profit while only generating 18% of total sales, highlighting its importance to Amazon's profitability [7]. Group 3: Future Investment Considerations - The departure of Todd Combs, a key portfolio manager known for tech investments, raises questions about the future of Amazon in Berkshire's portfolio, while Ted Weschler's continued presence may support Amazon's inclusion [11]. - Amazon's operating price-to-earnings ratio suggests it is currently undervalued, making it an attractive option for further investment as it is expected to perform well in 2026 [12][14].