💥 Is Berkshire About to Load Up on This AI Giant in 2026?

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Hi Fellow Investors,

A historic leadership transition at Berkshire Hathaway has investors watching closely for what comes next.

Artificial intelligence is reshaping the market, and Berkshire already has exposure.

One familiar tech giant may be the next AI stock Berkshire chooses to add.

Key Points:

• Warren Buffett’s retirement opens the door to a potentially more aggressive investment style.

• Berkshire already owns several AI-related companies, including Amazon and Alphabet.

• Amazon’s improving fundamentals and valuation could make it a compelling addition in 2026.

A New Era Begins at Berkshire Hathaway

The retirement of Warren Buffett marks the end of one of the greatest investing runs in history.

Leadership of Berkshire Hathaway will transition to Greg Abel in 2026.

While Berkshire’s value-driven philosophy remains intact, the shift may allow for more flexibility.

Artificial intelligence represents one of the largest long-term productivity shifts in decades.

That makes AI-related businesses natural candidates for future Berkshire investments.

Berkshire Is Already Quietly Invested in AI

Despite its conservative reputation, Berkshire already owns meaningful AI exposure.

Its holdings include Amazon and Alphabet.

Alphabet was added in 2025 and has already delivered strong gains.

Amazon (NASDAQ: AMZN) has been in the portfolio since 2019, though Berkshire has not added shares recently.

That pause may be temporary rather than permanent.

AWS and Advertising Are Doing the Heavy Lifting

Amazon Web Services is the company’s profit engine.

AWS generated the majority of Amazon’s operating income while accounting for a fraction of total revenue.

Growth in cloud computing rebounded strongly heading into 2026.

Advertising is also scaling rapidly and carries margins comparable to other digital ad giants.

Together, these segments dramatically improve Amazon’s earnings profile.

Valuation May Finally Be Attractive Enough

Amazon is notoriously difficult to value using traditional metrics.

Operating earnings provide a clearer picture than headline EPS.

By that measure, the stock is trading near the low end of its recent valuation range.

With profit growth expected to accelerate in 2026, that setup is notable.

For a company of Amazon’s quality, this window may not last long.

Strengths

• Dominant cloud platform generates the majority of operating profit.

• Advertising and AI-driven services expand margins beyond retail economics.

• Massive scale and ecosystem create durable competitive advantages.

Weaknesses

• Retail operations still carry lower margins than core tech peers.

• Capital intensity remains high across logistics and infrastructure.

• Leadership transition adds a layer of uncertainty for investors.

Potential

• AI-driven cloud demand could significantly expand AWS profitability.

• Advertising growth may unlock a higher blended operating margin.

• Additional Berkshire buying could serve as a powerful confidence signal.

Conclusion

Berkshire Hathaway’s leadership transition may mark the start of a new investment chapter.

Amazon combines scale, AI leverage, and improving fundamentals at a reasonable valuation.

If Berkshire adds to this position in 2026, it would not be a surprise.

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