24% of Warren Buffett's $300 Billion Portfolio Is Allocated to 3 AI Stocks, Featuring This New Acquisition

Warren Buffett shared that his close friend Bill Gates introduced him to ChatGPT shortly after it launched. He asked the AI to create a humorous version of My Way (likely referring to Frank Sinatra’s song, not Usher’s) in Spanish, and was thoroughly impressed. “I believe it’s a remarkable leap forward in technology, demonstrating our capabilities,” Buffett remarked during an interview.

Despite this, Buffett has not taken significant steps to directly benefit from the surge in generative artificial intelligence (AI) in recent years. He continues to approach the technology with caution, mindful of its potential uses. Nevertheless, Berkshire Hathaway ( BRK.A 0.77%) ( BRK.B 0.78%) currently has about 24% of its $300 billion portfolio in marketable equities invested in three AI-related companies, one of which was a recent addition.

1. Apple (23.1%)

Apple ( AAPL 2.04%) once made up over half of Berkshire Hathaway’s holdings. Even after reducing its position by nearly 70% since late 2023, Apple remains Buffett’s largest equity investment, valued at over $69.4 billion.

Apple has faced challenges in advancing its artificial intelligence initiatives. After unveiling generative AI features for iOS in 2024, much of the promised functionality has yet to be delivered. Reports suggest Apple has shifted focus to developing a chatbot interface, which may include a web search tool similar to Perplexity and a completely revamped Siri. This project is expected to blend Apple’s proprietary foundation models with third-party large language models.

Additionally, Apple has made its foundation models available to developers at no cost, allowing them to create AI applications that store data locally on users’ devices rather than relying on external data centers. This move aims to foster a secure AI app ecosystem.

Buffett’s decision to sell some Apple shares isn’t tied to the company’s slow AI progress. The main factor appears to be Apple’s valuation. The stock is currently priced at 31 times its projected earnings. For a business with modest growth, that’s a steep valuation. Given the substantial gains Berkshire has realized (and still holds) from its Apple investment, trimming the position seems timely.

2. Amazon (0.7%)

Amazon ( AMZN -0.61%) is the world’s leading cloud services provider. Although it was initially slow to respond to the generative AI boom, it has since enhanced its offerings for Amazon Web Services (AWS) clients.

Amazon organizes its “AI stack” into three tiers, providing AWS users with flexibility and advanced features. At the base are its custom chips for training and inference, delivering better cost efficiency than standard GPUs. The middle layer is Bedrock, a managed platform for developing new AI solutions. Amazon also has its own foundation model, Nova. The top layer features AI-driven tools for developers, such as Amazon Q, which assists with coding tasks.

According to management, AI-related services on AWS now represent a multibillion-dollar business growing at a triple-digit pace. Demand currently exceeds supply, which should fuel ongoing expansion as Amazon invests heavily in new data centers. This year alone, Amazon is allocating over $100 billion to capital expenditures.

Part of this spending supports Amazon’s expanding logistics network, which was restructured a few years ago to boost efficiency. AI models now help determine optimal inventory locations, enabling faster delivery for more products. This new approach has also lowered shipping expenses, contributing to improved operating margins in Amazon’s retail segment.

Although Amazon represents a small fraction of Berkshire’s holdings, it might warrant a larger allocation in your own portfolio.

3. Nucor (0.3%)

Nucor ( NUE -0.76%) was a trailblazer in using electric arc furnaces, or mini-mills, to convert inexpensive scrap metal into steel. Operating within the U.S., Nucor benefited from former President Donald Trump’s tariffs, which imposed a 50% duty on imported steel. Berkshire Hathaway acquired 6.6 million shares of Nucor in the second quarter.

The surge in data center construction has been a major growth driver for Nucor. Management reported that steel shipments for data centers doubled in the first half of 2025. Third-party research indicates that spending on new data centers will accelerate in 2026, rising from 18% this year to 26%. This trend should continue to boost Nucor’s revenue as tech giants build more facilities to house valuable hardware.

However, because Nucor’s mini-mills rely on electricity, rising demand from data centers has pushed energy costs higher, increasing the company’s expenses. Management expects profit margins to shrink in the third quarter, which will impact earnings per share. Last month, they projected third-quarter earnings per share between $2.05 and $2.15, down from $2.60 in the previous quarter.

Analysts, however, believe this is only a short-term challenge, as the booming demand for data centers should drive earnings per share higher in 2026 and 2027. With shares currently trading at just 12 times analysts’ 2026 earnings forecasts, Nucor stands out as a value stock with significant exposure to the AI sector.