Buffett Bets on AI: Key Investments in Apple and Amazon

Warren Buffett isn't a typical tech investor, yet he is making notable investments in AI-related companies like Apple and Amazon. This strategic approach leverages business models that benefit from the rapid growth of artificial intelligence.

Date: 15-03-2025

AI Rating: 7

Warren Buffett's shift towards technology investments, particularly in AI, presents a significant opportunity for investors. His holding company, Berkshire Hathaway, has substantial investments in both Apple and Amazon, leveraging their business models for exposure to AI growth.

Earnings Per Share (EPS): The report does not provide specific EPS values for either company, hence no analysis can be made on this metric.

Revenue Growth: Notably, Apple's services revenue has grown from 19.8% of sales in 2022 to 24.6% of sales in 2024. This increase underlines the company's ability to generate revenue beyond its traditional hardware sales, benefiting from the growing AI landscape. Amazon also showcases strong revenue across its divisions, producing around $55 billion quarterly from e-commerce and $35 billion from Amazon Web Services (AWS).

Net Income: The report lacks details regarding net income figures for Apple and Amazon, so this cannot be assessed.

Profit Margins: There are no details provided about the profit margins for either company, preventing any analysis in this area.

Free Cash Flow (FCF): The analysis does not include any information regarding free cash flow, leaving this metric unassessed.

Return on Equity (ROE): There is no mention of ROE in the document, which means this cannot be analyzed either.

Overall Assessment: The investments in Apple and Amazon reflect Buffett's strategy of investing in established businesses that can thrive amidst AI advancements. This approach offers a foundational layer of stability while capitalizing on AI trends.

Stocks: AAPL AMZN