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Buffett's Uncommon Investment in Tech Drives Alphabet's AI-Powered Market Value Growth

Buffett's Uncommon Investment in Tech Drives Alphabet's AI-Powered Market Value Growth

Bitget-RWA2025/11/26 13:52
By:Bitget-RWA

- Alphabet's $3.62T market cap surge surpasses Microsoft , driven by Gemini 3 AI's 37.5% HLE benchmark score and Berkshire Hathaway's 17.85M-share purchase. - Gemini 3's performance challenges OpenAI and Meta , with potential TPU adoption by Meta and Alphabet's ecosystem advantage in monetization. - AI sector volatility persists as Microsoft drops 12.9% and Nvidia faces scrutiny despite $57B Q3 revenue, signaling market caution toward AI-driven growth. - Buffett's rare tech bet sparks debate, with critics

Alphabet Inc. has overtaken

in terms of market value, signaling a significant change in the technology sector as its Gemini 3 AI model receives widespread praise and shifts investor attitudes. The parent company of Google on the New York Stock Exchange, a 3.33% increase from the day before, fueled by positive feedback for its new AI breakthrough. Alphabet’s valuation has reached $3.62 trillion, , the largest gain among major tech giants. This surge is largely attributed to the debut of Gemini 3, in various benchmarks, achieving a 37.5% score in the HLE test and outperforming OpenAI’s GPT 5 Pro. to Berkshire Hathaway’s recent acquisition of 17.85 million Alphabet shares—a rare move for Warren Buffett’s company, which is known for its preference for value stocks.

Volatility in the AI industry has increased amid ongoing concerns about a potential valuation bubble. While Alphabet and Apple have remained strong, other companies such as Meta and

are facing increased scrutiny. since their peak in October, as investors question whether its leading position in AI infrastructure can withstand Alphabet’s advances.
Buffett's Uncommon Investment in Tech Drives Alphabet's AI-Powered Market Value Growth image 0
, though a record, did not ease worries, as its stock fell 3.15% despite strong demand for Blackwell chips. The broader market has shifted towards more defensive sectors, , reflecting a more cautious approach to AI-driven expansion.

With Gemini 3, Alphabet is now a direct rival to OpenAI and Meta,

to use Google’s Tensor Processing Units (TPUs) by 2027. Such a partnership could shake up the AI chip market, where Nvidia currently controls 90%. —including Search, YouTube, Android, and Workspace—gives it a unique advantage in monetizing Gemini. Meanwhile, Apple’s measured approach to AI, and rumored use of Gemini technology, has strengthened investor faith in its ability to sidestep the cyclical risks affecting competitors like NVIDIA.

The discussion around Buffett’s investment tactics has resurfaced. Although Berkshire’s Alphabet holdings have grown by $415 million in just one week,

from Buffett’s usual reluctance to invest in high-risk technology stocks. are believed to be behind the decision, signaling a broader evolution in Berkshire’s investment approach. This change reflects the industry’s wider shift toward AI, joining forces to bring generative AI into financial services.

Looking forward, the competition in AI shows no signs of slowing down.

—with plans to boost AI spending to $91–93 billion in 2025—demonstrate its determination to stay ahead. However, pure AI companies such as C3.ai are encountering difficulties, in the past month, with investors seeking more concrete paths to profitability. The future of the sector will depend on whether businesses can convert AI breakthroughs into lasting revenue, a challenge that could define the next era of tech leadership.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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