Warren Buffett Might Not Own These Artificial Intelligence (AI) Stocks — but Their Fundamentals Check Out

From Nasdaq: 2025-06-08 05:40:00

Warren Buffett has historically avoided tech stocks like Apple due to their unpredictable nature. Instead, he prefers sectors with predictable cash flows. However, there are some AI stocks that fit his investing approach, such as Alphabet, with a strong economic moat and attractive valuation.

Alphabet dominates the web search industry with over 90% market share. Despite steady growth and profitability, the stock trades at a discount due to fears of breakup or disruption from AI chatbots. Similarly, Taiwan Semiconductor Manufacturing, a leading chip manufacturer, offers a strong competitive advantage and growth potential at an undervalued price.

Investors may want to consider buying Alphabet and Taiwan Semiconductor Manufacturing, as both companies have solid fundamentals and growth prospects. While Berkshire Hathaway sold its position in TSMC, these stocks align with Warren Buffett’s investment philosophy and could offer attractive returns in the future.



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