During the third quarter, Warren Buffett’s Berkshire Hathaway sold 41.7 million shares of Apple stock but started a new position in Alphabet. Apple’s revenue increased 8% to $102 billion, driven by strong sales in iPhone, Mac, and services. However, the stock is considered expensive at its current price.

Alphabet reported solid third-quarter financial results, with revenue increasing 16% to $102 billion. CFO Anat Ashkenazi highlighted strong demand for AI infrastructure and mentioned the adoption of custom chips and Gemini models. Wall Street expects Alphabet’s earnings to increase at 16% annually over the next three years.

Apple is well-positioned to monetize consumer adoption of artificial intelligence with its suite of generative AI capabilities. However, the stock is currently trading at a valuation of 36 times earnings, making it look very expensive. In comparison, Alphabet’s PEG ratio of 1.9 makes it a more attractive investment option.

Investors should consider buying a small position in Alphabet stock today as it has opportunities to monetize artificial intelligence across various businesses. With a reasonable valuation of 30 times earnings and a PEG ratio of 1.9, Alphabet presents a more appealing investment opportunity compared to Apple’s overvalued stock.

Read more at Nasdaq: Warren Buffett Sells Apple Stock and Buys a Trillion-Dollar AI Stock Up 12,180% Since Its IPO