Warren Buffett, a billionaire, is a big believer in several AI stocks. For some AI exposure, the Berkshire Hathaway leader (BRK–A, BRK–B) is turning to tech giants. He’s also keeping Nvidia (NVDA), a player that is more hype-driven.
Warren Buffett is a stock-picking expert. Few investors are as well-known for their stock-picking skills. Berkshire Hathaway founder (NYSE:BRK–A, NYSE:BRK–B) is one of the most wealthy people in the world. His influence on investing strategies has been immense. His track record in tech stocks is not so good, despite being as well-respected as Buffett as an investor.
Buffett’s expertise in technology has been a problem. He is still keen to invest in the booming market for artificial intelligence (AI). Buffett seems to be particularly interested in five AI stocks.
Warren Buffett isn’t known for buying into hype. He doesn’t invest based on whether there is enough or not enough shares. He approaches investing with a deeper evaluation of value. Does the company provide a service or good that is important? Are the current values of the company too low?
This strategy is not popular with retail investors who prefer high-volume trading. It’s proven to be reliable. This is evident in Berkshire’s success and Buffett’s staggering net worth of more than $106 billion.
It is also not surprising that Buffett has never been a great investor in tech. Tech is a sector that is wildly focused on hype. He had been reluctant to invest in the sector until recently. Buffett also stated that he won’t invest in products that he doesn’t understand.
There are many technical terms that investors may not be familiar with in tech. This makes Buffett less accessible to the industry. Even though he had started to invest in tech stocks in 2010, his track record was not good.
Warren Buffett AI Stocks Bet Rests On Tech Giants
It’s not surprising that Buffett has deep stakes in AI stocks, given his fraught relationship to tech. Buffett must be convinced that machine learning will bring a bright future.
Given Buffett’s five AI stock investments, it is possible that the billionaire may be a high-end investor in tech giants. These five stocks include Apple (NASDAQ;AAPL), Amazon, (NASDAQ/AMZN), Alphabet, Microsoft (NASDAQ/GOOGL), and Nvidia. These four stocks are the largest on Wall Street in terms of market capitalization. The fifth stock is the top 10 by market capitalization.
These stocks are likely to be owned by any celebrity investor. Buffett would be foolish to not own the four biggest stock market players. These companies are not driven by AI alone, even though they have different levels of AI exposure. These holdings don’t prove that Buffett is an AI believer.
However, his holdings in NVDA stock are a little more telling. This company is not as well-respected than its peers.
It is also the most well-known company in the AI hype train due to its A100 chip. This chip accounts for 95% of machine deep-learning microprocessors’ market. While it did not perform well in recent earnings, the stock rose almost entirely due to bullish sentiment about AI growth.
Brenden Rearick had no positions, directly or indirectly, in any of the securities mentioned in this article at the time of publication. These opinions are the author’s and are subject to the InvestorPlace.com Publishing Guidelines.
Brenden Rearick works as a Financial News Writer with InvestorPlace’s Today’s Market group. He focuses on digital assets and tech stocks with a particular focus on DeFi and crypto regulation.