Berkshire Hathaway increased its Alphabet position to 7.8% of its equity portfolio as AI-driven capex hits $205 billion for 2026.
Berkshire Hathaway expanded its stake in Alphabet to 7.8% of its equity portfolio, making it one of its largest holdings. CEO Greg Abel tripled the position in Q1 2026, following Warren Buffett’s initial investment in Q3 2025.
Alphabet’s Q2 2026 earnings showed strong growth, but shares fell after the company announced $205 billion in capital expenditures for the year. Free cash flow turned negative in Q1, the first time in over a decade, due to heavy AI infrastructure spending.
Despite the pullback, Alphabet remains a leader in AI investment, with total industry spending expected to reach $700 billion in 2026, up from $400 billion last year.