Billionaire investor Warren Buffett owns 41% of Berkshire Hathaway's $332 billion portfolio in 2 unstoppable artificial intelligence (AI) growth stocks.

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Buffett has consistently said he has trouble understanding complex technology, but that hasn't stopped him from making a fortune in AI stocks.

At a time, Berkshire Hathaway CEO Warren Buffett avoids technology stocks at all costs, arguing that he has trouble understanding complex technology. The famous investor was clear about his preference for investing in “simple businesses,” saying, “If there's a lot of technology out there, we won't understand it.”

However, over the years, this stance has changed. Today, more than 41% of Berkshire's equity portfolio consists of two stocks poised to benefit from the artificial intelligence (AI) revolution.

Image Source: Motley Fool.

1. Apple — $135 billion

Investors who have followed Berkshire Hathaway for any length of time will know that the company's top AI stock is apple (AAPL -0.82%). While the initial stake in the iPhone maker was made by one of Buffett's money managers, the so-called “Oracle of Omaha” soon saw its appeal and began accumulating shares of his own. To end the first quarter, Buffett's stake in Apple was 789 million shares worth about $135 billion.

While Apple has long been on the cutting edge of AI technology, the company has kept its plans for generative AI close to the vest — until recently. At Apple's Worldwide Developers Conference (WWDC) this week, the company unveiled its plans to introduce “Apple Intelligence,” a way to integrate creative AI functionality into a broad cross-section of its products and services. There is a comprehensive strategy. It features messages, photos, notes, and even notifications.

The most notable development is that Siri will get a long-awaited makeover. Not only will the digital assistant get a generative AI boost, but it will also be able to interact with apps on the iPhone and other devices, making it much more useful down the road.

The company was quick to point out that all of this new functionality will come with Apple's privacy feature built-in, perform many AI processes on the device, and help protect user information. Access to ChatGPT will come later this year, giving users this convenience. option Adding a chatbot for specific purposes.

Wall Street is almost universal in its glee over Apple's plans. The general consensus is that these improvements will trigger an upgrade “supercycle.” Apple has about 270 million of its 1.5 billion active iPhones. atleast Four years old, and it could be the catalyst behind the next iPhone purchase.

Wedbush analyst Dan Ives predicts that Apple will sell between 225 million and 230 million iPhones this year. At an average selling price of more than $900, the company could easily set a new record for iPhone revenue.

That would be good news for Buffett. And Thousands of other Apple investors.

2. Amazon — $1.8 billion

Buffett has admitted that he has “always admired Jeff. [Bezos]” AmazonOf (AMZN -0.09%) The former CEO also issued a mea culpa saying he passed on two opportunities to invest in the e-commerce and cloud computing leader. He stopped short of citing the “miracle” of the company's growth because “if I think something miraculous is going to happen, I don't bet on it.”

At the behest of one of Buffett's money managers, Berkshire Hathaway eventually corrected that oversight and now owns a substantial stake in Amazon. The company currently has 10 million shares of stock worth about $1.8 billion.

Amazon has a long history of developing sophisticated algorithms to drive its business, recommend products, map delivery routes, and maintain accurate inventory levels to meet demand.

Currently, the company offers a suite of AI-powered products and services on its industry-leading cloud infrastructure platform, Amazon Web Services (AWS). This represents one of the company's biggest opportunities, as infusing AWS with AI-powered features could be a catalyst for future cloud growth.

Is it time to buy?

Investors were recently concerned that Berkshire sold 13 percent of its Apple stake earlier this year. Some believed that Buffett had hurt Apple, but Buffett pushed back on that idea. He said the current corporate tax rate — currently 21% — was historically low, compared to rates of 35% or 52% in recent memory.

“I would say that at the end of the year, I think it's very likely that Apple is the largest common stock we have,” Buffett insisted. He went further, saying that “unless something really extraordinary happens,” Berkshire will still hold an important position in Apple “when Gregg takes over.” Buffett was referring to his designated successor, Greg Abel. This suggests that Apple will remain a core investor for Berkshire for the foreseeable future.

Apple's recent advances in generative AI, growing demand, and the stickiness of its product portfolio suggest the stock is still a buy.

The recent economic downturn and the ongoing battle with inflation have weighed on Amazon, but the company is on the road to recovery. Its e-commerce business has returned to growth, and demand for its digital advertising and cloud services is increasing. Despite recent challenges, it is the world's largest provider of e-commerce and cloud infrastructure services, which is why Amazon is also a buy.

Adoption of generative AI continues to accelerate, although no one knows for sure how high it will go. According to global management consulting firm McKinsey & Company, estimates show that generative AI could have an economic impact of between $2.6 trillion and $4.4 trillion in the coming years.

With a storm of this magnitude, Buffett's stake in these AI stocks is going to be worth a lot more.

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