Buffett's Top AI Stock Picks

Warren Buffett is recognized for opportunistically buying and holding longstanding blue chip stocks at Berkshire Hathaway, his holding company, which is worth over a trillion dollars. I might add that Berkshire Hathaway's portfolio is sneakily heavily invested in AI. The top four AI stocks by position size make up over half the portfolio!

1. Apple Buffett isn't scared to let a winning investment dominate Berkshire's portfolio. Look no further than Apple (NASDAQ: AAPL). After Buffett bought it in 2016, the stock is now 44.2% of the portfolio. Apple is an AI stock, yet Buffett has sold few shares despite huge unrealized gains. Why? Buffett said customers would give up their second car for an iPhone, citing great devotion.

Apple and other tech giants are integrating AI into their consumer devices. Apple has integrated AI into iOS for Siri, facial recognition, content suggestions, and more. Tim Cook recently said Apple prioritizes generative AI efforts at an event. It ended its electric car project and would move employees to Apple's AI business. Prepare for the future.

2. Moody's Corporate credit and analytics firm Moody's (NYSE: MCO) resembles Buffett's style. Berkshire has invested in Moody's shares since 2000 and has results. It's only 2.5% of Berkshire's portfolio, but Moody's is smaller than Apple. Berkshire owns 13.5% of the company.

Moody's rates business credit and sells market research using data. For Moody's, AI is natural. OpenAI and Azure are used to model the company's decades-old data. Moody's financial market reputation depends on its shift to tech-driven data analytics. Moody's has raised revenue for 64 quarters, demonstrating its longevity.

3. Amazon Buffett added Amazon (NASDAQ: AMZN) to Berkshire's portfolio in 2019. Since then, the stock has more than doubled, proving that outstanding enterprises may be invested in at any time. Amazon is known for innovation. Amazon, the largest US e-commerce giant, has established a leading cloud platform and streaming service and is now investing in AI.

As with Apple, Amazon uses generative AI in its consumer businesses. AI will condense product reviews for e-commerce shoppers to save time. AWS is accumulating huge resources, including Nvidia chips and its own, to help cloud customers build AI applications. Amazon using AI might boost long-term growth in e-commerce and cloud, two businesses with gas left.

4. Snowflake Snowflake (NYSE: SNOW) is Berkshire Hathaway's only AI stock since its founding. Since Snowflake's 2020 IPO, the holding company has retained the stock. It's the smallest company on this list, representing 0.3% of Berkshire's portfolio.

Snowflake could be huge in AI. The company's cloud platform organizes and stores data, making it easy to find and interact with third-party apps. Snowflake also offers a data marketplace where consumers may exchange and buy third-party data sets to integrate. Data is the foundation of AI because it's trained on it. Snowflake could be key to AI, and Berkshire bought the stock early.

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