Catenaa, Monday, November 17, 2025- Alphabet stock rose by 5% on Monday after Berkshire Hathaway disclosed a $4.9 billion stake in Google’s owner, the conglomerate led by Warren Buffett.
The stock purchase, a rare bet on technology by Berkshire, comes amid growing concerns over heavy AI spending as tech behemoths splurge hundreds of billions of dollars to build data centers and buy chips that power them.
A filing on Friday showed that Berkshire owned 17.85 million shares in Google’s parent company as of September 30. The stake would be worth $4.93 billion as of the stock’s last close.
While Berkshire’s investment could be seen as an endorsement of the tech sector, questions over the sustainability of the spending spree have triggered market pullbacks in recent weeks.
Buffett, also known as “The Oracle of Omaha” for his investing success as well as his folksy wisdom, is ending his 60-year run as CEO of Berkshire Hathaway at the end of 2025. He will be succeeded by Greg Abel.
Alphabet trades at 25.01 times expected earnings over the next 12 months, versus 30.02 for Nvidia and 29.37 for Microsoft, according to data compiled by LSEG.
Alphabet stock has risen by over 51% so far this year.
Berkshire has let its cash pile climb to a record, unsettling some investors who view the company as a bellwether for the US economy and worry the hoard signals Buffett sees valuations as too high.
The Alphabet investment, however, suggests the company could be balancing caution with opportunism, deploying capital selectively in companies it views as resilient.
Still, Berkshire’s equity portfolio remains heavily tilted towards financial services, which accounted for 36.6% of the holdings as of September, according to Morningstar.
