- Berkshire Hathaway acquired 17.85 million shares of Alphabet, valued at approximately $4.93 billion.
- Alphabet stock reached a new all-time high of $293, rising about 6% after the investment news.
- Wall Street analysts highlighted the purchase as validation of Google‘s strong fundamentals and expanded AI capabilities.
- Alphabet increased its planned 2025 spending for AI data centers to $92 billion, up from $85 billion.
- The company raised $12.5 billion through bond sales this year to support AI investments.
Shares of Alphabet (GOOGL) surged to a record high following Berkshire Hathaway‘s purchase of 17.85 million shares, worth about $4.93 billion based on Friday’s closing price. This move occurred as Warren Buffett, Berkshire’s CEO, prepares to retire by the end of the year. The stock rose roughly 6% on Monday to reach a new intraday high of $293.
The investment surprised the market due to Buffett’s historically cautious approach to technology stocks. The strong reaction pushed investor sentiment upward, sending Alphabet shares higher. According to CFRA analyst Angel Zino, “The move validates Google’s strong fundamentals and provides Berkshire exposure to a leading AI provider through Google Cloud and Gemini expansion.” He noted that Alphabet’s solid cash flow and valuation likely contributed to the confidence in the purchase.
Year-to-date, Alphabet stock has increased more than 50%, making it one of the top performers among major U.S. tech companies. Following a strong third-quarter earnings report, the company raised its 2025 capital spending guidance on Artificial Intelligence data centers for its Google Cloud division to $92 billion from a previous $85 billion forecast. Management anticipates a “significant increase” in this spending next year.
To support these investments, Alphabet issued $12.5 billion in bonds in May, tapping debt markets similarly to other companies aggressively investing in AI infrastructure.
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