Warren Buffett, the revered investor of Berkshire Hathaway, has made headlines with his investments in artificial intelligence (AI), a field he has often admitted not fully understanding. Despite his reservations, Buffett’s portfolio includes three notable AI stocks—Alphabet, Amazon, and Apple—which analysts predict could yield significant returns in the upcoming year.
Alphabet, the parent company of Google, has seen remarkable growth recently. After a tumultuous start to the year, the stock has soared nearly 70% year-to-date. Buffett expressed regret for not investing in Alphabet sooner, a mistake he corrected by acquiring shares in the third quarter of 2025. Key to Alphabet’s momentum is its Google Cloud division, which is anticipated to drive future growth, especially following the launch of its Gemini 3.0 large language model. This innovation is poised to attract enterprises eager to implement AI solutions. Furthermore, Google’s advertising revenue is expected to benefit from generative AI integration, enhancing its profitability and possibly pushing the stock higher.
Amazon has also proven to be a lucrative investment. Although its stock has lagged in 2023 with only modest gains compared to the S&P 500, it has risen approximately 160% since Buffett’s initial investment in early 2019. CEO Andy Jassy highlighted AI’s impactful influence across Amazon’s business segments, particularly within Amazon Web Services (AWS), which recently reported a 20% year-over-year increase in sales. The focus on agentic AI positions AWS as a leader in AI-driven solutions, with expectations for growth to accelerate in 2026.
Apple, despite a perceived reduction in investment from Buffett, remains his largest holding. The technology giant has lagged behind in stock performance this year but has shown signs of recovery, outperforming the S&P 500 in recent months. Apple recently posted record iPhone sales, solidifying its position in the smartphone market for the upcoming year. Looking ahead, Apple’s anticipated launch of smart glasses could serve as a significant catalyst for growth, further elevating its stock price.
In summary, despite Buffett’s previous concerns about AI, his portfolio’s focus on Alphabet, Amazon, and Apple reflects confidence in their potential for substantial gains. Each company is harnessing AI in innovative ways, setting the stage for a promising year ahead.
