Alphabet and Amazon have emerged as promising investment options, particularly under the watchful eye of Warren Buffett, who is stepping down as CEO of Berkshire Hathaway. Known for his value investing approach, Buffett’s portfolio choices have historically provided insight for potential investors. The recent inclusion of artificial intelligence (AI) companies in Berkshire’s portfolio further emphasizes the relevance of these choices.
Among the AI stocks that Berkshire owns, Amazon and Alphabet stand out as potential market leaders by 2026. Both companies present compelling investment opportunities at this juncture, as their stock trajectories indicate strong future growth. Alphabet, in particular, has seen a notable rise, with its stock appreciating approximately 60% in 2025. In contrast, Amazon’s performance has been relatively stagnant, with only a 3% increase.
Investors may note that while Buffett has been an influential figure at Berkshire, some decisions regarding tech-centric investments, including those in Amazon and Alphabet, may have been directed by Todd Combs and Ted Weschler, who have managed portions of the portfolio. Despite the uncertainty regarding the original buyers of these stocks, Buffett’s continued endorsement suggests a level of confidence in their future performance.
Alphabet, which accounts for about 1.7% of Berkshire’s portfolio, and Amazon, comprising 0.7%, have demonstrated resilience in the face of skepticism. Concerns about Alphabet’s monopoly status and its ability to compete in generative AI were prevalent at the start of 2025. However, the company’s stock has thrived, aided by its innovations and revenue streams from its core product, Google Search. The potential introduction of its custom AI chip, the Tensor Processing Unit (TPU), may further bolster its market position in 2026.
Meanwhile, Amazon’s growth in 2025 has not been indicative of a flawed business model. The company’s revenue rose by 13% in the third quarter, with its cloud computing division, Amazon Web Services (AWS), contributing significantly to its operating income despite representing only 18% of total revenue. Recently, AWS experienced its fastest growth pace in several years, suggesting a solid foundation for future expansion even as the market has largely overlooked Amazon’s potential this year.
As of now, Alphabet’s stock shows a current price of $313.51, with a market capitalization of $3.8 trillion. In comparison, Amazon’s stock is trading at $232.52, holding a market cap of $2.5 trillion. Both companies’ performance metrics indicate they are well-positioned for future growth, despite Alphabet’s recent surge overshadowing Amazon’s steady performance.
The broader technological landscape continues to evolve, and the success of these companies may hinge on further advancements in AI and cloud computing. The expectation is that both Alphabet and Amazon will leverage their strengths to enhance shareholder value. The growing importance of AI technologies and cloud solutions in various sectors may present additional opportunities for these giants.
While Buffett’s impending departure from Berkshire may introduce uncertainties, his past investment choices, particularly in companies like Alphabet and Amazon, remain relevant. As investors look toward the future, the potential for these stocks to soar in 2026 could offer substantial returns. As such, maintaining a close eye on Alphabet and Amazon, bolstered by Berkshire Hathaway’s endorsement, could prove beneficial for those seeking to navigate the complexities of the current market.
For further information on these companies, you can visit their official websites: Google and Amazon Web Services.
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