Warren Buffett’s Berkshire Puts $62 Billion in AI Giants Apple and Amazon

As Warren Buffett gears up to retire as CEO of Berkshire Hathaway later this year, the 93-year-old investor leaves behind a legacy of calculated yet evolving strategies. Known for his value investing principles, Buffett’s conglomerate has increasingly embraced the tech sector—particularly companies shaping the future of artificial intelligence (AI).

Notably, 22% of Berkshire Hathaway’s $282 billion portfolio is now invested in just two AI-influential giants—Apple and Amazon—marking a significant strategic shift in Buffett’s investment playbook.

Apple: Berkshire’s Cornerstone in AI Ambitions

Apple Remains Top Holding Despite Recent Reductions

Apple (NASDAQ: AAPL) remains the top equity holding in Berkshire Hathaway’s portfolio, representing 21.6% of its total value. With a market capitalization of $3 trillion, Apple ranks as the world’s third most valuable company, following Microsoft and Nvidia.

Despite trimming over 600 million shares in 2023, Berkshire’s Apple stake remains a core part of the investment firm’s future. Buffett’s slight retreat has sparked some speculation, particularly around Apple’s slow progress in certain AI developments.

AI Roadblocks and Global Market Challenges

While Apple maintains dominance in hardware and consumer loyalty, its AI efforts—especially around voice-based AI—have lagged. The delayed release of its next-gen Siri and difficulties in the Chinese market, where brands like Huawei are gaining ground, have presented notable hurdles.

Yet, as Warren Buffett’s unwavering confidence shows, Apple’s brand strength, global ecosystem, and R&D capabilities still position it to make AI-driven gains in the coming years.

“Despite these setbacks, Apple retains its place as the top holding in Berkshire’s portfolio, a testament to Buffett’s ongoing confidence in the company’s long-term potential.”

Amazon: The Rising Star in Buffett’s AI Strategy

A Smaller Stake with Massive AI Potential

While Amazon (NASDAQ: AMZN) makes up a relatively smaller portion of Berkshire’s holdings, its importance is on the rise. Interestingly, Buffett credits Todd Combs or Ted Weschler—his trusted investment managers—with the initial Amazon purchase.

“Buffett has acknowledged that he made a mistake by not buying Amazon earlier, as the e-commerce giant has proven to be far more than just an online retailer.”

AWS at the Forefront of Generative AI

Amazon’s crown jewel is Amazon Web Services (AWS), a cloud computing giant that now holds 30% of the global cloud market. As demand for AI-driven infrastructure grows, AWS is expected to become even more lucrative.

From customizable large language models (LLMs) to ready-to-use AI tools for small businesses, AWS is central to the generative AI boom. It already contributes 63% of Amazon’s operating income, showcasing how crucial AI has become to the company’s business model.

“Before this generation of AI, we thought AWS had the chance to ultimately be a multi-hundred-billion dollar revenue run rate business,” said CEO Andy Jassy. “We now think it could be even larger.”

Looking Ahead: Post-Buffett Strategy and AI-Focused Growth

With Buffett expected to step down, the question remains: will Berkshire Hathaway further increase its exposure to AI powerhouses like Amazon? Given the momentum behind AI, cloud computing, and data-driven tech infrastructure, it's a move that could define the next generation of Berkshire’s leadership.

Both Apple and Amazon have proven they are not just tech titans—but also key enablers in the AI revolution, making them fitting choices for a future-forward investment strategy.

Conclusion

As Warren Buffett prepares to hand over the reins of Berkshire Hathaway, his legacy includes not only decades of successful value investing but also a notable shift toward future-ready sectors like artificial intelligence. With a combined 22% of Berkshire’s $282 billion portfolio invested in Apple and Amazon, the conglomerate is strategically positioned to benefit from the accelerating AI boom.

While Apple continues to dominate with its brand power and ecosystem despite some AI-related setbacks, Amazon’s AWS is already a major player in generative AI and cloud infrastructure. Buffett’s calculated investments in these tech giants underscore his belief in long-term value, innovation, and adaptability.

As AI reshapes industries and economies, these two companies stand at the forefront of this transformation. Berkshire’s evolving strategy reflects an acknowledgment that future growth lies in embracing technological innovation—ensuring the firm remains competitive and influential well beyond Buffett’s tenure. The AI era may just be Berkshire’s next big chapter.