Warren Buffett, the legendary investor known as the Oracle of Omaha, has built his fortune by identifying undervalued companies with substantial competitive advantages. While he’s traditionally been cautious about technology investments, Berkshire Hathaway’s Q2 2025 portfolio reveals significant exposure to artificial intelligence through five major holdings.
These investments demonstrate how Buffett applies his time-tested value investing principles to companies that leverage AI to enhance their core business operations. Let’s look at the five Warren Buffett stocks using AI in their business models.
1. Apple: Buffett’s Biggest AI Bet at 22% of Portfolio
Apple represents Berkshire Hathaway’s largest holding, comprising 22.31% of the portfolio with a value of $57.4 billion across 280 million shares. Despite a recent 6.67% reduction in holdings, this massive allocation reflects Buffett’s confidence in Apple’s ability to integrate AI seamlessly into its ecosystem. The stock has performed well compared to the price at which he bought it years ago.
Apple’s AI strategy focuses on enhancing user experience rather than developing standalone AI products. Siri has evolved into a more sophisticated voice assistant, while on-device machine learning powers features like computational photography, predictive text, and personalized recommendations. The company’s approach to AI prioritizes privacy by processing data locally on devices whenever possible, creating a competitive advantage that aligns with Buffett’s preference for companies with strong economic moats.
This investment fits perfectly with Buffett’s philosophy of investing in consumer brands he understands. Apple’s loyal customer base, recurring revenue through services, and integration of AI to improve product functionality create a sustainable competitive advantage.
The company generates revenue from hardware sales and services. AI serves as an enhancement rather than the primary business model, reducing the speculative risk often associated with pure AI plays.
2. Amazon: The Cloud Computing and AI Infrastructure Giant
Amazon represents 0.85% of Berkshire’s portfolio with a $2.2 billion value across 10 million shares. The stock has appreciated since his entry, reflecting strong market confidence in the company’s AI initiatives. Amazon’s AI applications span multiple business segments, making it a comprehensive AI investment within Buffett’s portfolio.
Through Amazon Web Services (AWS), the company serves as a primary AI infrastructure provider, offering machine learning services to businesses worldwide. Alexa voice technology demonstrates Amazon’s consumer AI capabilities, while sophisticated recommendation algorithms drive e-commerce sales. The company’s supply chain optimization relies heavily on AI to manage inventory, predict demand, and streamline logistics operations.
Amazon’s AI strategy creates value across its entire ecosystem. E-commerce benefits from personalized shopping experiences, AWS generates revenue from AI services sold to other companies, and operational efficiency improvements reduce costs. This diversified approach to AI implementation aligns with Buffett’s preference for companies with multiple revenue streams and strong competitive positions in their respective markets.
3. Payment Processing Powerhouses: Visa and Mastercard’s AI Revolution
Visa and Mastercard represent over 2% of Berkshire’s portfolio, demonstrating Buffett’s confidence in the companies’ AI-enhanced payment processing. Visa holds 1.14% of the portfolio, valued at $2.9 billion across 8.3 million shares. Mastercard comprises 0.87%, valued at $2.2 billion across 4 million shares.
Both companies utilize AI extensively for fraud detection, processing billions of transactions while identifying suspicious patterns in real-time. Machine learning algorithms analyze spending behaviors, geographic patterns, and merchant relationships to prevent fraudulent activity. This AI-powered security creates significant value for cardholders and merchants, justifying these companies’ fees for payment processing services.
The competitive advantage AI provides in payment security is substantial. As digital transactions continue growing, the ability to process payments safely and efficiently becomes increasingly valuable. These companies’ AI systems learn continuously from new transaction data, improving fraud detection capabilities. This creates a defensive moat around their business models that strengthens as transaction volumes increase.
4. American Express: AI-Driven Financial Services Innovation
American Express represents Buffett’s second-largest AI-related holding, accounting for 18.78% of the portfolio and valued at $48.4 billion across 151.6 million shares. The stock has performed well over the decades Buffett has owned it. This substantial allocation reflects the significant role AI plays in modern financial services.
American Express employs AI for fraud prevention, customer service automation, and personalized rewards recommendations. Machine learning algorithms analyze spending patterns to offer targeted promotions and identify potential risks. Customer service chatbots handle routine inquiries, reducing operational costs while maintaining service quality. Credit risk assessment models use AI to evaluate applicant creditworthiness more accurately than traditional methods.
The company’s AI initiatives enhance customer experience while improving operational efficiency. Personalized recommendations increase card usage and customer satisfaction, while automated fraud detection protects the company and cardholders. These AI applications generate measurable returns through increased revenue and reduced losses, demonstrating the practical value of AI investment in established financial services.
5. Why Buffett Chooses Established Companies Over Pure-Play AI Stocks
These five holdings represent approximately 44-45% of Berkshire Hathaway’s total portfolio, demonstrating significant AI exposure through established, profitable companies. This approach contrasts sharply with investing in speculative AI startups or companies whose entire business models depend on unproven AI technologies.
Buffett’s strategy focuses on companies that use AI to enhance existing business operations rather than betting on AI as a standalone revenue source. Each of these companies possesses economic moats that AI strengthens rather than creates.
Apple’s brand loyalty, Amazon’s scale advantages, Visa and Mastercard’s network effects, and American Express’s customer relationships all benefit from AI enhancement. This reduces investment risk while maintaining upside potential from AI innovation.
The Oracle of Omaha’s approach reflects his fundamental investment philosophy, which is applied to modern technology. These companies generate substantial revenue from core business operations, with AI serving as a competitive advantage rather than a speculative bet. This strategy provides exposure to AI growth while maintaining the margin of safety that characterizes successful value investing.
Conclusion
Warren Buffett’s AI investment strategy demonstrates how traditional value investing principles can be applied to emerging technologies. By focusing on established companies that use AI to enhance their competitive advantages, Berkshire Hathaway gains significant AI exposure while maintaining reasonable risk levels.
These five stocks—Apple, Amazon, Visa, Mastercard, and American Express—represent over $130 billion in AI-enhanced holdings, proving that investors can participate in the AI revolution through profitable, established enterprises rather than speculative ventures. This approach offers a blueprint for investors seeking AI exposure without abandoning sound investment principles.