Warren Buffett indirectly profits from Nvidia through ETFs and holdings in tech giants

From NASDAQ: 2024-06-23 03:10:00

Warren Buffett is known for avoiding tech stocks, including Nvidia. However, while Buffett doesn’t own any shares of Nvidia directly, Berkshire Hathaway’s portfolio includes two ETFs that do, indirectly benefiting from the AI stock’s gains. Nvidia’s addition to the S&P 500 in 2001 has also contributed to Berkshire’s portfolio growth.

Buffett has indirectly profited from Nvidia’s rise through his holdings in Amazon, Microsoft, and Alphabet, all major customers of Nvidia for their cloud services. The AI boom, fueled by generative AI adoption, has boosted the performance of these tech giants, indirectly benefiting investors like Buffett who hold positions in these companies.

Investors could also be profiting from Nvidia without owning the stock directly by holding S&P 500 index ETFs or mutual funds with positions in the AI stock. Despite not owning Nvidia shares, investors can still benefit from the stock’s success through other widely held stocks or funds with exposure to Nvidia, highlighting the advantages of investing in diversified ETFs.

While Nvidia may not be among the top picks of the Motley Fool Stock Advisor team, the AI stock has shown substantial growth potential over the years. Investors who missed out on buying Nvidia earlier can still benefit from its success indirectly through other investment vehicles like ETFs or mutual funds with positions in the tech giant. Consider diverse investment options to capitalize on Nvidia’s potential growth opportunities.



Read more at NASDAQ: Warren Buffett Doesn’t Own Nvidia. Here’s How He’s Profited From the Artificial Intelligence (AI) Stock’s Big Gains Anyway