Berkshire Hathaway defies AI bubble fears by purchasing 17.8 million shares of Google parent Alphabet, worth $4.3 billion, in the third quarter. The stock jumped 4% in after-hours trading. Berkshire also bought shares of Chubb, Domino’s Pizza, Sirius XM, and Lennar, maintaining its position in Amazon.

AI giants like Alphabet, Amazon, Meta Platforms, and Microsoft are spending hundreds of billions yearly, with Morgan Stanley estimating $3 trillion on data centers by 2028. Wall Street worries about AI companies translating expenditures into sustainable revenue. With Buffett stepping down, it’s unclear who made the call to buy Alphabet stock. Buffett will be “going quiet” and no longer write Berkshire’s annual report.

Buffett’s cautious approach to the stock market and acquisitions has led Berkshire to record cash levels. The stock portfolio shrinks as Berkshire marks three years of net selling, including more Apple shares. Buffett has been steadily offloading Apple shares for over a year.

Read more at Yahoo Finance: Despite AI bubble fears, Warren Buffett’s Berkshire Hathaway loads up on shares of hyperscaler Alphabet amid huge rally