Warren Buffett goes all-in on Google stock, provoking large share price increase

Warren Buffett's Berkshire Hathaway has poured in billions recently into Alphabet Inc. (Google) stock, contributing to its rise on Monday and recovering optimism for a recently lackluster AI industry amid concerns over a potential "AI Bubble."

Investors react to the news of Buffett increasing Berkshire's stake in Google to 17.9 million shares, Reuters.

While Berkshire has not been a notoriously avid Google investor, in recent months, it has poured much of its capital onto its parent company Alphabet Inc. In September 30th, it was reported that Berkshire owned 17.85 million shares. Based on their regulatory filing, that stake may be worth roughly $4.3 billion. But, according to Investors.com, as a result of the post-earnings report surge, the stock may be worth as much as just shy of $5 billion, comprising of about 1.62% of Berkshire's stock portfolio, according to GuruFocus.

Google has been unique amongst the Magnificent Seven cohort of big tech stocks as the one leading in share price growth in 2025, with it making a 46% surge over 2025, with some room left for it to bring this number much higher. While other Mag. 7 companies like Nvidia and Apple have faced certain stagnation due to fears of an AI Bubble and overvaluation, Google continuously beat expectations due to its revolutionary returns on investment into AI infrastructure, especially after its very strong Q2 earnings report in late July. The company has thrived on integrating AI into the Google search engine, especially from Google Cloud, as well as through greater efficiency of profit through means of AI-powered ad placement.

In response to the news on Monday, like any other Buffett-led stock frenzy, Google shares surged 3.9%, over a $10 boost per share. Other Magnificent Seven members fell in share price, led by Nvidia's currently 1.5% decline as of 12:40 PM EST as investors gleam over its Q3 earnings report this Wednesday but instead give Google their bets for the future of artificial intelligence in the United States.

However, Berkshire Hathaway's trades have been very well-regarded as prioritizing long-term growth through Buffett's "buy-and-hold" investment strategy, yet stocks like Google have been points of concern over future growth and being very volatile in the short term due to rampant developments. The investment analysis firm TipRanks argued that their move, "reflects a wave of buying interest… many investors view the firm’s involvement as a sign of long-term conviction rather than a short-term trade." TipRanks justifies their move with Google's continuously strong cash flow from Google Cloud and ads, and its fundamental investments into AI.

Many firms like TipRanks have recently increased their rating of Alphabet Inc. to a "Strong Buy" or "Buy," following investor sentiments.