Alphabet (Google) Class A

GOOGL

Market cap $3.86T

This dominant company is a clear leader in the artificial intelligence race. The market isn't asking investors to pay a crazy valuation to own shares.

Buffett hasn't always been a big fan of tech stocks. Other managers at Berkshire are now betting big on AI.

Alphabet's core risk is structural, not cyclical. Regulators worldwide are escalating pressure on the company's dominance in search, Android, and advertising.

Nvidia was briefly valued at $5 trillion earlier this year. Apple will need to sustain its lofty valuation to gain entrance to the $5 trillion club.

Nvidia is the leader in AI infrastructure and has strong growth opportunities ahead. Alphabet is a market leader in search, and its cloud computing unit is growing quickly.

Billionaire Bill Ackman runs Pershing Square, a hedge fund that beat the S&P 500 by 24 points in the last decade and currently owns large positions in Alphabet and Uber. Alphabet is monetizing artificial intelligence through custom chips and cloud computing services, as well as consumer products like Google Search and Gemini.

Alphabet Inc. (GOOG) (GOOGL) is rated a Strong Buy, driven by robust AI momentum and a promising AI chips deal with Meta Platforms. Google's TPU chips position it as a viable Nvidia competitor, targeting a significant share of the AI data center market. Profitability and margins have improved, supporting a justified multiples expansion despite a P/E premium versus historical averages.

Alphabet trained its latest AI model, Gemini 3, on its own TPU chips. Amazon has teamed with Anthropic to unleash what will soon be over 1 million of its Trainium2 chips.

Berkshire Hathaway has been reducing its massive stake in Apple, and it recently bought Alphabet stock for the first time. Apple stock remains the largest position in the Berkshire Hathaway equity portfolio.

Gemini's true power comes from Alphabet's ecosystem, not model benchmarks. It strengthens Alphabet's defense during a significant shift in search behavior.