In a remarkable strategic pivot, Warren Buffett’s Berkshire Hathaway has established a substantial $4.3 billion stake in Alphabet Inc., marking a significant departure from the legendary investor’s historically cautious approach toward technology equities. The November 14, 2025, disclosure revealed holdings of 17.85 million Alphabet shares, immediately propelling the position into Berkshire’s ten largest U.S. stock investments.
This move represents a notable correction for Buffett, who had previously acknowledged missing Google’s early growth potential. Market response was swift, with Alphabet shares climbing 1.7% in after-hours trading following the announcement.
Massive Texas Infrastructure Expansion
Coinciding with Berkshire’s investment, Alphabet unveiled ambitious plans for a $40 billion data center expansion across Texas, scheduled for completion by 2027. CEO Sundar Pichai detailed development of three new campus locations in Armstrong and Haskell Counties, representing one of the company’s most substantial infrastructure commitments to date.
The Texas initiative focuses on multiple strategic priorities:
• Enhanced artificial intelligence and cloud computing infrastructure
• Expanded data processing capacity for AI applications
• Workforce development targeting training for over 1,700 specialists by 2030
• Implementation of integrated solar and battery storage solutions
Artificial Intelligence Leadership Driving Performance
Alphabet’s commanding position in artificial intelligence continues to strengthen, with its Gemini platform now processing seven billion tokens per minute. The Gemini application has achieved remarkable adoption, boasting more than 650 million monthly active users.
Should investors sell immediately? Or is it worth buying Alphabet?
The widespread deployment of “AI Overviews” and “AI Mode” within search functionality underscores the company’s technological dominance. This innovation directly fuels cloud segment growth, which surged 34% year-over-year to $15.2 billion during the third quarter.
Impressive Financial Metrics
Alphabet’s fundamental performance appears to validate Berkshire’s investment thesis. The technology giant achieved a milestone $102.3 billion in quarterly revenue, representing 16% annual growth and marking the first time quarterly sales have exceeded $100 billion.
Earnings per share demonstrated even more robust expansion, jumping 35% to $2.87. Management has signaled continued confidence through increased capital expenditure projections, raising 2025 guidance to between $91 billion and $93 billion.
The convergence of Buffett’s endorsement, substantial internal investment, and commanding AI market position creates a compelling narrative for Alphabet’s future trajectory. While late to recognize the opportunity, Berkshire’s substantial position suggests confidence in the company’s continued growth potential.
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