Analysis Report: Berkshire Hathaway's $4B Alphabet Investment Amid AI Valuation Concerns

Berkshire Hathaway initiated a $4.3 billion position in Alphabet Inc. (Google) during Q3 2025, purchasing 17.85 million shares of Alphabet Class C (GOOG) stock as disclosed in its November 14, 2025 SEC 13F filing [1]. This marks Berkshire’s first-ever investment in Google, making it the conglomerate’s 10th largest equity holding (1.4% of its $266.4 billion portfolio) [1]. Concurrently, Berkshire trimmed its Apple Inc. stake by ~15% (selling ~41 million shares) [5]. This move comes amid a global AI stock sell-off on November18, 2025, driven by valuation fears ahead of Nvidia’s earnings [4].

Alphabet’s GOOGL stock surged

from July1 to November18, 2025 ($175.74 → $284.28) [0]. Post Berkshire’s filing, GOOGL rose an additional on November17 [2], reflecting investor confidence in Buffett’s endorsement. However, it declined on November18 amid broader AI sector sell-off [4].

Berkshire’s investment signals long-term confidence in Alphabet’s AI-driven growth. Alphabet’s Q3 2025 results (first $100B revenue quarter) show Google Cloud up

($15.2B) with a $155B backlog (up 46% QoQ) [3]. Gemini AI app has [3], underscoring leadership in consumer/enterprise AI.

81.2% of analysts rate GOOGL as “Buy” (consensus target: $300 → +5.5% upside) [0]. However,

view AI bubble risks as the top market concern [4], creating short-term volatility.

Metric	Value	Source
Berkshire’s Alphabet Stake	$4.3B	[1]
GOOGL Price Growth (Jul-Nov2025)	+61.76%	[0]
Alphabet Q3 Revenue	$100B	[3]
Google Cloud Q3 Growth	34% YoY ($15.2B)	[3]
Gemini MAUs	650M	[3]
GOOGL Analyst Target	$300	[0]
AI Bubble Risk Concern	45% of investors	[4]

• Alphabet
  : GOOGL (Class A), GOOG (Class C) [1,0]
• Berkshire Hathaway
  : BRK.A, BRK.B (portfolio shift) [1]
• Apple
  : AAPL (trimmed stake) [5]

• AI Infrastructure (TPUs/GPUs) [3]
• Cloud Computing [3]
• Consumer Internet (Search/YouTube) [3]

• Unclear if Buffett or his managers (Combs/Weschler) made the Alphabet investment [1]
• Lack of details on Berkshire’s long-term stake strategy [1]
• Nvidia’s Q3 earnings impact on AI sentiment remains uncertain [4]

• AI Valuation Bubble
  : 45% of investors see this as top risk—may trigger short-term corrections [4]
• Competition
  : Microsoft (Copilot) and Amazon (AWS Bedrock) pose threats to Alphabet’s AI market share [3]
• Portfolio Shift
  : Berkshire’s Apple trim signals potential tech sector reallocation [5]

1. Nvidia’s Q3 earnings (validate AI demand/valuation) [4]
2. Gemini adoption growth (user base/enterprise contracts) [3]
3. Berkshire’s next 13F filing (stake expansion?) [1]
4. Google Cloud backlog (track enterprise AI momentum) [3]

Users should be aware that AI valuation concerns (cited by 45% of global fund managers) may lead to short-term volatility in Alphabet’s stock price [4]. Additionally, competitive pressures in the AI sector could impact Alphabet’s growth rates [3].

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[0] Ginlix Analytical Database (Internal Tools: get_stock_daily_prices, get_company_overview)
[1] Nazym Azimbayev, “Berkshire finally buys Google”, Substack (2025). URL: https://nazymaltbridge.substack.com/p/berkshire-finally-buys-google
[2] Billy Duberstein, “Warren Buffett Just Bought Alphabet Stock”, Fool.com (2025). URL: https://www.fool.com/investing/2025/11/17/warren-buffett-just-bought-alphabet-stock-and-here/
[3] Futurum Group, “Alphabet Q3 FY2025 Earnings Show Broad-Based AI-Driven Growth”, FuturumGroup.com (2025). URL: https://futurumgroup.com/insights/alphabet-q3-fy-2025-earnings-show-broad-based-ai-driven-growth/
[4] Tasmin Lockwood, “Global stocks slide as valuation fears grow ahead of Nvidia earnings”, CNBC (2025). URL: https://www.cnbc.com/2025/11/18/global-stocks-slide-as-valuation-fears-grow-ahead-of-nvidia-earnings.html
[5] Yahoo Finance, “Warren Buffett’s Berkshire snaps up major tech stock, trims favorite”, YahooFinance.com (2025). URL: https://finance.yahoo.com/news/warren-buffett-berkshire-snaps-major-212300418.html