38.6% of Berkshire Hathaway's $328 Billion Portfolio Is Parked in 3 Artificial Intelligence (AI) Stocks

Anthony Di Pizio, The Motley FoolWed, July 1, 2026 at 5:05 PM UTC

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Key Points -

Warren Buffett steered Berkshire to market-beating returns for 60 years, and his successor is likely to adopt a similar investing strategy.

Buffett never chased popular themes like AI, but at least three companies in Berkshire's portfolio are using AI to supercharge their businesses.

These three holdings account for more than one-third of Berkshire's portfolio and could deliver strong returns over the long term.

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Warren Buffett is one of the world's most iconic investors. He acquired a controlling stake in a struggling textiles manufacturer called Berkshire Hathaway(NYSE: BRKA)(NYSE: BRKB) in 1965, and turned it into a holding company for his various investments. By the time he stepped away from the CEO role at the end of 2025, it was a $1 trillion conglomerate with numerous subsidiaries and a $328 billion stock portfolio.

Berkshire stock returned 19.7% annually during Buffett's 60-year tenure, meaning that an investment of $1,000 in 1965 would have grown to $48 million by the end of 2025. The conglomerate's new CEO, Greg Abel, worked with Buffett for over two decades before taking the reins, so he's likely to adopt a similar focus on companies with steady growth, reliable earnings, and strong management teams.

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Chasing momentum was never part of Buffett's philosophy, so you typically won't find Berkshire piling into artificial intelligence (AI) stocks. However, at least three of the conglomerate's current holdings are using AI to supercharge their existing businesses, and Abel has aggressively added to one of them this year at a very attractive price.

The three stocks account for over one-third of the value of Berkshire's entire portfolio. Here they are.

Image source: The Motley Fool.

1. Alphabet: 8.8% of Berkshire Hathaway's portfolio

Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL) is the parent company of Google, YouTube, Waymo, DeepMind, and more. Berkshire initially bought this stock in the third quarter of 2025, but it has more than quadrupled its position under Abel's leadership this year. Alphabet is now Berkshire's fifth-largest holding, with a portfolio weighting of 8.8%.

Alphabet is a leader in the rapidly growing AI industry. It has embedded the technology into its flagship Google Search platform with features like AI Overviews and AI Mode that give users faster access to the information they are looking for. Then there is Google Cloud, which provides access to a raft of tools -- from computing capacity to ready-made large language models -- to help other businesses deploy AI software.

Google Search and Google Cloud produced revenue growth of 19% and 63%, respectively, during the first quarter of 2026. Both of those growth rates have accelerated for multiple quarters in a row, thanks to AI, which is a big reason why Alphabet stock has almost doubled over the last 12 months.

Nevertheless, with a price-to-earnings (P/E) ratio of just 25.7, Alphabet stock is still trading at a discount to the Nasdaq-100 technology index, which has a P/E of 34.1. Therefore, it appears Berkshire snagged a pretty good deal.

2. Coca-Cola: 10.1% of Berkshire Hathaway's portfolio

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Coca-Cola(NYSE: KO) is one of Berkshire's oldest positions. Buffett spent $1.3 billion to accumulate 400 million shares in the beverage giant between 1988 and 1994, and Berkshire still hasn't sold a single one. Today, that position is worth a whopping $33 billion, and it paid Berkshire $816 million in dividends last year alone.

Coca-Cola sells products from 200 brands in more than 200 countries around the world. While it doesn't sound like a technology company, becoming a market leader in the hypercompetitive beverage industry requires more than just tasty sodas and snacks. AI is currently a huge part of Coca-Cola's strategy, helping optimize everything from supply chains and manufacturing processes to even marketing campaigns.

In 2024, the company signed a commitment to spend $1.1 billion on the Microsoft Azure cloud platform over five years, tapping tools such as the Copilot virtual assistant and OpenAI's large language models. If AI makes Coca-Cola more efficient over the long term, it could translate into strong returns and perhaps even higher dividends for shareholders like Berkshire.

3. Apple: 19.7% of Berkshire Hathaway's portfolio

Berkshire Hathaway plowed roughly $38 billion into Apple(NASDAQ: AAPL) stock between 2016 and 2023. At the start of 2024, that position was worth over $170 billion and accounted for more than half the value of the conglomerate's entire portfolio. To cash in some gains and reduce risk, Berkshire has since sold around three-quarters of its Apple stake, but the iPhone maker still has a portfolio weighting of 19.7%.

For the last few years, Apple has fitted its iPhones, iPads, and Mac computers with specialized chips designed to run its Apple Intelligence suite of AI features and software apps. Apple Intelligence can help write text messages and emails, and it can also learn to prioritize certain notifications based on user preference. It even includes an upgraded version of Siri, which is now smarter than ever.

Apple is positioned to become the world's largest distributor of AI software to consumers, thanks to its installed base of more than 2.5 billion active devices worldwide. If it succeeds, Berkshire could still reap extraordinary returns even from its heavily reduced position.

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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, and Microsoft. The Motley Fool has a disclosure policy.

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Source: “AOL Money”