Warren Buffett said in an April 2023 interview with CNBC that artificial intelligence (AI) is “an extraordinary thing.” But Buffett quickly added, “I don't know if that's beneficial.”
Whatever the billionaire's opinion on AI, he is already reaping financial benefits from the technology. Buffett has invested his $159 billion in these eight of his AI stocks, most of which have delivered big wins over the past 12 months.
1. Apple
apple (NASDAQ:AAPL) This is Buffett's largest AI holding to date. berkshire hathawayThe tech giant's stock is worth about $156.9 billion. However, the past 12 months have not been particularly strong for the stock due to sluggish sales growth.
That may change soon. Apple is widely expected to announce its AI strategy at a developer conference in June and announce new AI features for the iPhone.
2. Amazon
Berkshire owns $1.8 billion Amazon (NASDAQ:AMZN) stock. Buffett didn't initially make the decision to buy the e-commerce and cloud services leader, but he has expressed regret for not buying the stock sooner.
Amazon has long been a pioneer in AI and has achieved significant efficiency gains with this technology. The ongoing surge in the adoption of generative AI should provide a major boost to the company's Amazon Web Services cloud platform.
3.Microsoft
teeth microsoft (NASDAQ: MSFT) Buffett AI stock? Although not stated in Berkshire's regulatory filings, the answer is a resounding “yes.” Berkshire subsidiary New England Asset Management (NEAM) owns $11.6 million worth of Microsoft stock.
Microsoft is one of the biggest winners of the AI boom. The company has integrated OpenAI's GPT-4 large-scale language model into its entire product lineup. Microsoft's Azure cloud platform is also experiencing strong growth as customers rush to build and deploy AI apps.
4.Broadcom
Buffett also owns the stock. broadcom (NASDAQ:AVGO) Thanks to NEAM. The investment firm's position in Broadcom is valued at more than $9.5 million at the end of 2023.
Broadcom is a leading provider of custom AI accelerators and networking software used to scale AI applications. Its new XPU accelerator could claim the record as the largest chip ever built for a consumer AI company.
5.NXP Semiconductors
NXP Semiconductors (NASDAQ:NXPI) is another AI chip maker in NEAM's portfolio (which indirectly makes NEAM a Buffett stock). NEAM owns $8.9 million in NXP stock.
AI is everywhere these days. This is good for NXP. The company focuses on chips for the automotive, Internet of Things (IoT), mobile, and communications infrastructure markets.
6. Qualcomm
Through NEAM, Buffett holds positions worth $8.3 million. Qualcomm (NASDAQ:QCOM). Qualcomm hasn't seen as much of an uptick over the past 12 months as some of Buffett's AI stocks, but it's still up more than 35%.
Qualcomm is best known for the technology used in mobile phones. The company has also invested heavily in AI, recently partnering with several other top technology companies to develop open source software that allows AI apps to run on any chip.
7.IBM
Berkshire Hathaway used to own shares directly IBM (NYSE:IBM) But that's no longer the case. But with NEAM holding $5 million in IBM, the tech bellwether remains a Buffett stock.
IBM may not be seen as the AI leader today as it once was. However, the company's Watson platform is used by many companies to harness the power of AI.
8. Alphabet
Buffett publicly admitted several years ago that he made a mistake by not investing in parent company Google. alphabet (NASDAQ:GOOG) (NASDAQ:Google) Before. Although the tech giant is not yet part of Berkshire's portfolio, NEAM owns approximately $2.5 million worth of Alphabet stock.
Alphabet has had some public relations embarrassments regarding its AI efforts. However, the company remains one of the leaders in AI development. It is also rumored that Google is in talks with Apple to integrate the Google Gemini AI model with the iPhone.
Are these Buffett AI stocks good to buy now?
I think all of these Buffett AI stocks have the potential to deliver solid returns over the long term. Which is the best choice? I like Amazon, Microsoft, and Alphabet. In my opinion, AI will primarily be run in the cloud. These three companies operate the largest cloud platforms and should continue to be big winners for years to come.
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John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool's board of directors. Alphabet executive Suzanne Frye is a member of The Motley Fool's board of directors. Keith Speights has held positions at Alphabet, Amazon, Apple, Berkshire Hathaway, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Microsoft, and Qualcomm. The Motley Fool recommends Broadcom, International Business Machines, and NXP Semiconductors and recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
Warren Buffett has $159 billion invested in these 8 artificial intelligence (AI) stocks Original article published by The Motley Fool
