Alphabet shares: Surge to All-Time High Following Berkshire Hathaway’s $4.9B Investment

We’re seeing a major shift in investor sentiment: Berkshire Hathaway disclosed a $4.93 billion stake in Alphabet, the parent company of Google. Berkshire now holds 17.85 million Alphabet shares as of September 30, 2025, as reported in its filing with the U.S. Securities and Exchange Commission. This is not just any bet or Buffett’s conglomerate; it’s rare. Berkshire usually avoids big tech bets, but this purchase shows strong confidence in Alphabet’s long-term growth, particularly in AI and cloud services. At nearly $5 billion, the position makes Alphabet one of the top 10 U.S. stock holdings in Berkshire’s portfolio. At the same time, Berkshire has trimmed its Apple holdings, a telling shift given how much Apple has been central to its portfolio.

The Immediate Impact on Alphabet’s Stock

Alphabet shares rose roughly 5–6% once the news was announced. Before the market opened, the stock reached a record high, showing strong excitement among investors. The increase is more than a rise in stock price; it also gives investors a strong confidence boost. Berkshire’s endorsement signals to the market that a proven, value-focused investor sees major long-term potential in Alphabet.

Alphabet’s Future Prospects Following the Investment

To understand why Berkshire made this bet, we need to look at Alphabet’s business landscape:

• Cloud and AI: Google Cloud is gaining momentum, and Alphabet’s AI investments are now central to its growth story.
• Advertising power: Even with broader economic worries, Google Search and YouTube continue to generate strong revenue.
• Innovation edge: Alphabet continues to push in quantum computing, autonomous driving, and other forward-looking tech.

At the same time, Alphabet faces challenges, regulatory scrutiny, capital-intensive AI infrastructure, and strong competition across cloud and AI. But Berkshire’s sizable stake suggests it believes Alphabet can navigate these risks.

What This Means for Investors

So, why should we care (as investors)? Here are a few key takeaways:

• Long-term validation: When a heavyweight like Berkshire backs you, it sends a strong message about durability and trust.
• AI exposure: For those betting on artificial intelligence, Alphabet becomes a more attractive play, especially given its scale and infrastructure.
• Strategic shift: Berkshire reducing its Apple exposure and increasing its Alphabet holding could reflect a broader rebalancing toward tech growth.
• Risk considerations: While the upside is clear, investors should remain aware of potential valuation risk, execution risk, and regulatory headwinds.

Bigger Picture: What It Means for the Tech Market

This isn’t just a big move for Alphabet; it could signal a wider trend:

• Value meets growth: Berkshire’s move bridges its traditional value style with growth investing, hinting at evolving strategies among long-term players.
• AI confidence: The investment underlines how major players see AI not as a bubble (for now), but as a core driver for future profits.
• Institutional rotation: We may be witnessing a rotation into big tech names that are not just growth stories, but scalable platforms.

This could spur other value-focused institutions to rethink their exposure to high-growth tech.

Conclusion

Berkshire Hathaway’s $4.9 billion investment in Alphabet is significant and noteworthy. It underlines deep confidence in Alphabet’s future, especially around AI and cloud computing. For investors, this is a major signal: a long-time traditional investor is now leaning into a high-growth tech play. Alphabet’s stock rally reflects that optimism. But this is more than a short-term pop; it could mark the start of a broader re-rating of Alphabet as a core, long-term growth company. As we watch how Berkshire and others navigate the evolving tech landscape, one thing is clear: Alphabet is no longer just Google; it’s a major bet on the future.

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Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.