Berkshire Hathaway (BRK.A) Greg Abel Increases Stake in AI Stock

Alphabet Inc. Class A (NASDAQ:GOOGL) shares traded at 367.03 dollars on July 8, 2026, up a modest 0.08% for the day, as investors continue digesting the news that Berkshire Hathaway built a stake in the Google parent worth more than 29 billion dollars under new chief executive Greg Abel.

At a Glance

• Alphabet trades at 367.03 dollars, within a 52 week range of 330.20 to 408.61 dollars
• Market capitalization stands at 4.47 trillion dollars, with a price to earnings ratio of 33.64
• The dividend yield sits at 0.24%, a small but growing payout
• RSI reads 54.45, a neutral momentum signal
• Berkshire Hathaway's combined Alphabet stake now tops 29 billion dollars

Why Berkshire's Bet Matters to Alphabet's Story

Abel took over Berkshire on January 1 and moved fast. He trimmed the conglomerate's portfolio from 42 holdings to 29 in the first quarter alone, according to the company's 13F filing with the SEC on May 15, 2026. Much of the freed up capital landed in one place: Alphabet. Berkshire more than tripled its Class A stake and opened a new Class C position, pushing the combined holding to almost 58 million shares worth roughly 17 billion dollars by the end of March.

Then came June 1, when Alphabet announced an 80 billion dollar equity raise to fund artificial intelligence infrastructure. Berkshire stepped in as anchor investor with a 10 billion dollar private placement, split evenly between Class A shares at 351.81 dollars and Class C shares at 348.20 dollars, a discount of about 6.5% to that day's closing price. Add it up and Berkshire's Alphabet position now exceeds 29 billion dollars, placing it among the firm's five largest holdings alongside Apple, American Express, Coca Cola and Bank of America, and pushing Chevron out of that group.

Alphabet Valuation, Momentum and Yield

At a price to earnings ratio of 33.64, Alphabet is not cheap by traditional measures, but investors have generally been willing to pay up for its position in search, cloud computing and AI infrastructure. The stock sits roughly 10% below its 52 week high of 408.61 dollars and well above its low of 330.20 dollars, suggesting a name that has cooled off from its peak without falling into a slump. An RSI of 54.45 backs that up: neither overbought nor oversold, just drifting near the middle of its range.

The dividend yield of 0.24% is thin, a reminder that Alphabet still behaves more like a growth company than an income stock. The bull case rests on Berkshire's conviction, the scale of the AI capital raise, and Alphabet's diversified revenue base. The bear case centers on valuation risk if AI spending does not translate into profit growth, along with the sheer size of the 80 billion dollar raise, which dilutes existing shareholders even as it funds expansion.

What Abel's Selling Spree Reveals

The Alphabet buildup did not happen in isolation. Abel exited 16 positions in the first quarter, including Domino's, Amazon, Visa, Mastercard and UnitedHealth Group, according to reporting from Fortune. Many of those sales trace back to the departure of portfolio manager Todd Combs, who left for JPMorgan. Abel told the Wall Street Journal in April that he unwound the positions Combs had managed. The Domino's exit is notable because Buffett built that stake gradually over six quarters with no hint it was temporary. Overall, Berkshire was a net seller of about 8 billion dollars in equities for the quarter, buying roughly 16 billion dollars worth of stock while selling close to 24 billion, according to Yahoo Finance.

How Much Further Will Berkshire Lean Into Alphabet?

Berkshire's rapid pivot under Abel raises a natural question: is this a one time anchor investment tied to Alphabet's AI raise, or the start of a larger, sustained position. The scale of the commitment, paired with the wholesale portfolio turnover elsewhere, suggests Abel is willing to make concentrated bets that look different from the Buffett era. Whether that conviction holds through Alphabet's next earnings cycle remains an open question for shareholders watching both companies closely.