{"id":474951,"date":"2026-06-03T23:59:12","date_gmt":"2026-06-03T23:59:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/474951\/"},"modified":"2026-06-03T23:59:12","modified_gmt":"2026-06-03T23:59:12","slug":"warren-buffetts-successor-greg-abel-just-plowed-10-billion-into-this-magnificent-artificial-intelligence-ai-stock","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/474951\/","title":{"rendered":"Warren Buffett’s Successor, Greg Abel, Just Plowed $10 Billion into this Magnificent Artificial Intelligence (AI) Stock"},"content":{"rendered":"

Here\u2019s one trait emerging in the fledgling tenure of Greg Abel as CEO of Berkshire Hathaway (BRKA<\/a> +0.92%) (BRKB<\/a> +0.92%): He\u2019s not afraid to make big moves.<\/p>\n

Abel, who\u2019s been in the top job since Jan. 1 following the retirement of the legendary Warren Buffett, bought 36.4 million shares of Alphabet (GOOG<\/a> 0.76%) (GOOGL<\/a> 0.69%) stock in his first three months on the job. That alone instantly made Alphabet one of Berkshire Hathaway\u2019s biggest holdings, at roughly $20 billion. It was an extraordinary move considering how new Alphabet is to the Berkshire portfolio — the conglomerate only opened its position in the third quarter of 2025. <\/p>\n

But now Abel is doubling down on that bet, agreeing to buy another $10 billion in Alphabet stock through a private placement. The transaction includes buying $5 billion of Class A stock at about $352 per share and $5 billion of Class C stock at about $348 per share \u2014 a 6% discount to market prices. <\/p>\n

So now Berkshire has about $30 billion in Alphabet stock, representing nearly 9% of the company\u2019s entire $325 billion investment portfolio. Obviously, Abel and the Berkshire Hathaway team see something special in Alphabet right now. Let\u2019s take a closer look.<\/p>\n

\"photo<\/p>\n

Image source: Alphabet.<\/p>\n

Why is Alphabet selling stock?<\/p>\n

The Berkshire purchase was part of an $80 billion sale announced by Alphabet to help fund its build-out of artificial intelligence infrastructure. Alphabet, like many of the big tech companies, is investing heavily in data centers and chips to meet an ever-increasing demand for AI computing capacity. The company recently revised its full-year capital expenditure guidance to as much as $190 billion.<\/p>\n

\u201cThe company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company\u2019s available supply,\u201d Alphabet said in a statement. \u201cBy scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.\u201d <\/p>\n

Alphabet\u2019s sale will also include $30 billion in underwritten offerings and $40 billion for an at-the-market offering program for Class A and Class C stock, likely beginning in the third quarter.<\/p>\n

Alphabet already held bond sales in November and February that brought in $55 billion, and raised another $11 billion in the European market.<\/p>\n

\"Alphabet<\/p>\n

Today’s Change<\/p>\n

(-0.69%) $-2.51<\/p>\n

Current Price<\/p>\n

$359.34<\/p>\n

Key Data Points<\/p>\n

Market Cap<\/p>\n

$4.4T<\/p>\n

Day’s Range<\/p>\n

$358.10 – $366.39<\/p>\n

52wk Range<\/p>\n

$162.00 – $408.61<\/p>\n

Volume<\/p>\n

2M<\/p>\n

Avg Vol<\/p>\n

28.5M<\/p>\n

Gross Margin<\/p>\n

60.43%<\/p>\n

Dividend Yield<\/p>\n

0.23%<\/p>\n

Why Alphabet stock is appealing in 2026<\/p>\n

All year, I\u2019ve predicted that Alphabet would have the best year of all the Magnificent Seven stocks<\/a>. And it\u2019s well on its way, having gained 15% so far in 2026 and 115% over the last year. The company has leveraged AI to further solidify its mammoth advantages in internet advertising and is deploying Google Gemini, its intelligent assistant and family of AI models, across its ad infrastructure.<\/p>\n

Alphabet also added AI-generated summaries to its popular Google search engine, warding off threats from popular generative AI chatbots to cut into its search traffic. And it\u2019s worked — revenue in the first quarter from Google search was up 19% from a year ago. Alphabet\u2019s overall revenue in the first quarter was $108.89 billion, up 21% from last year, and 81.5% of that money came from advertising sources, including Google Search, YouTube, and the Google Network.<\/p>\n

Advertising is the engine that makes Alphabet go — but the growth of its cloud computing division, Google Cloud, is what\u2019s driving Alphabet stock higher these days. Google Cloud is the No. 3 cloud computing<\/a> company in the world by usage, accounting for 14% of the global cloud infrastructure services market. It generated $20.02 billion in revenue from Google Cloud in the first quarter, up 63% year over year. It also nearly doubled its backlog to $462 billion on the strength of its enterprise AI offerings and its decision to sell tensor processing units (TPUs), the company\u2019s in-house semiconductor chips. Management expects to convert more than half of the backlog into revenue over the next two years. <\/p>\n

Abel\u2019s bet on Alphabet<\/p>\n

The thing that strikes me the most about Abel\u2019s quick purchases of Alphabet stock<\/a> is how it fits into Berkshire Hathaway\u2019s overall investment strategy. The conglomerate is known to make careful purchases and avoid stocks of companies it deems overvalued. It\u2019s been selling a lot more stock than it\u2019s been buying in recent quarters, and Buffett himself has lamented that Berkshire would like to find more deals.<\/p>\n

For Berkshire to scoop up $30 billion in Alphabet stock in less than a year speaks volumes about how management views the stock. Its forward price-to-earnings ratio<\/a> of 25.3 is much lower than Berkshire favorite Apple (35.2) or Amazon (28.6), a cloud computing company that was a long-time Berkshire Hathaway holding until Abel abruptly exited the position last quarter. <\/p>\n

Considering the significant advantages that Alphabet maintains in its internet search and advertising businesses, and its rapid growth of Google Cloud — including its incredible backlog that will convert to cash — Abel\u2019s aggressive move makes sense.<\/p>\n","protected":false},"excerpt":{"rendered":"Here\u2019s one trait emerging in the fledgling tenure of Greg Abel as CEO of Berkshire Hathaway (BRKA +0.92%)…\n","protected":false},"author":2,"featured_media":474952,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":["post-474951","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-il","tag-israel","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/474951","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=474951"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/474951\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/474952"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=474951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=474951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=474951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}