Warren Buffett's Berkshire Hathaway holds Amazon as the top AI stock, outperforming Apple.

From Nasdaq: 2024-09-12 06:45:00

Investors are flocking to AI stocks on Wall Street, but Warren Buffett remains cautious. Berkshire Hathaway owns shares in Apple, a key player in AI, but the best AI stock in its portfolio is Amazon. Apple is catching up with AI offerings, but Amazon leads with a suite of AI-related services like Bedrock and AWS generating strong revenue growth.

Amazon’s CEO, Andy Jassy, sees explosive growth in AI revenue, with plans to create custom AI chips to compete with Nvidia. Amazon’s diverse revenue streams, including AWS and e-commerce, make it a solid investment. Expect Amazon to continue innovating in AI and other industries for sustained growth and profits, surpassing Apple in AI advancements and financial performance.

While Berkshire Hathaway holds more Apple shares than Amazon, the latter leads in AI technology with its comprehensive AI services and plans to release AI optimization options. Amazon’s strong financials, diverse revenue streams, and track record indicate potential for further growth. Investors looking for AI leadership and solid returns should consider Amazon over Apple.

Investors considering Amazon should note that the Stock Advisor team doesn’t list it as a top stock pick for the future. Despite this, the service has outperformed the S&P 500 since 2002, providing valuable guidance on stock selection and growth. Past recommendations like Nvidia have yielded huge returns, highlighting the potential associated with following expert advice for investment success.



Read more at Nasdaq: This Is the Top Artificial Intelligence (AI) Stock Warren Buffett Owns (Hint: It’s Not Apple)