Berkshire Hathaway is spreading its wings into new Magnificent Seven stocks.Warren Buffett and Berkshire Hathaway (BRK.B 1.12%)(BRK.A 1.11%) continue to sell Apple stock, increasing the company's cash position to close to $400 billion. One stock Berkshire is buying is Alphabet (GOOG +3.11%)(GOOGL +3.13%). The technology giant and leading artificial intelligence (AI) stock has been a favorite of Buffett and the team for years, although they have never bought the stock. That is, until last quarter, when Berks ...

Core Viewpoint - Growth stocks are expected to continue leading the market, particularly with the ongoing advancements in artificial intelligence (AI), presenting significant growth opportunities for certain companies by 2028 [1]. Group 1: Broadcom - Broadcom is well-positioned as the AI market shifts towards inference, with companies seeking alternatives to Nvidia's GPUs [3]. - The company has secured significant contracts, including a potential $60 billion to $90 billion opportunity from Alphabet, Meta Platforms, and ByteDance by fiscal 2027, which is more than double its projected revenue for fiscal 2025 [4]. - A $10 billion order from a fourth customer, believed to be OpenAI, and potential collaborations with Oracle and Apple further enhance Broadcom's growth prospects in custom AI chips [5][6]. Group 2: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the only foundry capable of consistently manufacturing advanced chips at scale with strong yields, making it a critical partner for chip designers [8]. - The company anticipates AI chip demand to grow at a compound annual growth rate (CAGR) of over 40% through 2028, with plans to raise prices by up to 10% next year [10]. - TSMC's ability to produce defect-free chips at smaller node sizes provides it with strong pricing power and positions it favorably in the market [9][11]. Group 3: Alphabet - Alphabet has transformed perceived risks from AI chatbots into growth drivers, with increased search growth and the success of its Gemini AI chatbot [12]. - The company has mitigated significant risks, maintaining control over its Chrome browser and Android operating system, which are essential for internet access for billions [13]. - Alphabet's cloud computing segment, combined with its AI models and custom chips, is expected to enhance margins, while its Waymo robotaxi business presents additional growth opportunities [14][15].

Core Viewpoint - Google CEO Sundar Pichai argues that the Justice Department's proposed remedies to break up its search monopoly would lead to "many unintended consequences" and could undermine the company's ability to invest in research and development as it has for the past two decades [1][3]. Group 1: DOJ Proposals - The DOJ has requested remedies including the forced divestment of Google's Chrome web browser and mandates for data sharing on search results with competitors to enhance market competition [1][5]. - Pichai described the data-sharing requirement as "extraordinary," suggesting it would effectively result in a "de facto divestiture" of Google's online search business [2]. - The DOJ's proposals are considered by Pichai to be more extensive than the European Union's Digital Markets Act, which targets internet gatekeepers [4]. Group 2: Impact on Google - Pichai stated that if the DOJ's remedies are approved, it would make it "unviable" for Google to continue its current level of investment in research and development [3]. - The forced selloff of Chrome and Android could "break these platforms," potentially jeopardizing U.S. national security and allowing other countries, like China, to advance in AI and technology development [11]. - The DOJ has also suggested that if initial remedies do not effectively address Google's monopoly, further actions, including divesting ownership of the Android operating system, may be considered [7]. Group 3: Legal Proceedings - The DOJ's case against Google is in a historic remedies phase, which began on April 21 and is expected to last approximately three weeks [3]. - U.S. District Judge Amit Mehta previously ruled that Google holds a monopoly over online search and has the authority to determine how to address its anticompetitive practices [3]. - The DOJ's antitrust chief has emphasized the dangers posed by Google's monopoly to freedom of speech and digital markets, arguing that leaving the issue unaddressed is irresponsible [12].

Core Viewpoint - A federal judge is expected to target Google's multibillion-dollar search engine deals with companies like Apple as part of a remedy for its illegal online search monopoly, which could lead to significant changes for the tech giant valued at $1.8 trillion [1][2]. Group 1: Legal Proceedings and Potential Outcomes - US District Judge Amit Mehta will determine the remedies for Google following a ruling that it violated US antitrust law by maintaining a monopoly in its online search business [2]. - The Department of Justice (DOJ) is seeking to force Google to end its exclusive agreements with companies like Apple and potentially divest its Chrome web browser if competition does not increase in the search market [3][6]. - Experts believe that the judge will likely order Google to stop paying for exclusive default status with companies, which could significantly impact its business model [4][5]. Group 2: Financial Implications - In 2021, Google paid over $26 billion for search placement deals, with $20 billion going to Apple in 2022 to secure its position as the default search engine on Safari [6]. - The DOJ's proposed remedies are seen as substantial, with the potential for significant changes to Google's financial arrangements and market strategies [9]. Group 3: Market Dynamics and Competition - Google's exclusivity deals with companies like Apple are viewed as attempts to control the market and suppress competition, making them a focal point for the DOJ's case [8]. - The DOJ aims to prevent Google from leveraging its search monopoly to dominate emerging markets, such as AI, indicating a broader concern about competitive practices [13]. Group 4: Company Responses - Google's legal team has characterized the DOJ's proposed remedies as a "wish list" for competitors, arguing that they would undermine the company's innovations and user experience [11]. - Google has expressed concerns that the DOJ's proposals could jeopardize user privacy and security, as well as hinder its AI development efforts [12].