TLDR
- Berkshire Hathaway added roughly $17 billion in Alphabet stock in Q2, making it Berkshire’s third-largest holding at around 106 million shares
- CEO Greg Abel called Google a “significant player” in AI, citing visibility from AI use across Berkshire’s own portfolio companies
- Berkshire’s original $10 billion stake was taken roughly 15 months ago at a 6.5% discount
- A federal judge rejected the DOJ’s request to force Google to sell its AdX advertising exchange
- 28 Wall Street analysts give GOOGL a consensus Strong Buy, with an average price target of $425.88, implying 26% upside
Alphabet (GOOGL) stock is moving higher in pre-market trading Thursday, trading around $337.12, up 0.63%. Two separate catalysts are driving the move: a major vote of confidence from Berkshire Hathaway and a favorable court ruling on Google’s ad-tech business.
Berkshire CEO Greg Abel confirmed on CNBC Wednesday that the conglomerate added roughly $17 billion worth of Alphabet stock in Q2. That purchase was the single largest addition to Berkshire’s portfolio during the quarter.
Berkshire now holds around 106 million Class A and Class C Alphabet shares, currently valued at approximately $36.6 billion. That makes Alphabet Berkshire’s third-largest equity holding.
Abel said the investment wasn’t made in a vacuum. Berkshire owns companies across a wide range of industries, giving it a ground-level view of how AI is actually being used and what it delivers.
“We have a lot of visibility from within our companies as to how we’re using AI, what type of benefits it’s delivering, so that brought incremental interest, and then we saw Google as a significant player,” Abel told CNBC’s Becky Quick.
The original Berkshire investment in Alphabet came around 15 months ago, when Berkshire put in $10 billion at a 6.5% discount. Abel said he personally recommended that discount rate, and Warren Buffett agreed.
Court Clears Google on AdX
Alongside the Berkshire news, a federal judge on Wednesday rejected the Department of Justice’s request to force Google to sell its AdX advertising exchange. That ruling removes one of the larger regulatory overhangs on Alphabet’s business.
The decision means Google keeps control of AdX rather than facing a forced divestiture. For investors, it provides more clarity on the future of Alphabet’s ad-tech revenue stream.
Both pieces of news together are giving investors a reason to buy the stock heading into Thursday’s session.
Abel also pointed to another indirect benefit for Berkshire from the AI boom. Rising demand for data centers is driving electricity consumption higher, which could be a tailwind for Berkshire Hathaway Energy.
Wall Street Stays Bullish
Wall Street remains broadly positive on GOOGL. Of 28 analysts covering the stock, 24 rate it a Buy and four rate it a Hold. No analysts currently have a Sell rating.
The average price target sits at $425.88, which represents roughly 26% upside from current levels.
Alphabet is one of five so-called hyperscalers, alongside Microsoft, Meta, Amazon and Oracle, pouring capital into AI infrastructure. Goldman Sachs estimates global hyperscaler capital expenditure for 2026 at around $1 trillion.
Berkshire also increased its Delta Air Lines position by 44%, or about $1.6 billion, during the same quarter it loaded up on Alphabet.
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