Alphabet (GOOGL) Hits New ATH After Berkshire’s $4.9B Bet
Alphabet Inc. shares surged to a record high after Warren Buffett's Berkshire Hathaway disclosed a $4.93 billion stake in the tech giant. The 17.85 million-share purchase marks one of Buffett's final major investments before his planned year-end retirement.
The stock jumped 6% to $293 in Monday trading, extending its year-to-date gain past 50%. Analysts view Berkshire's endorsement as validation of Google's AI leadership through its Cloud and Gemini divisions. "This MOVE signals institutional confidence in Alphabet's cash flow and valuation," said CFRA's Angel Zino.
Google recently raised its 2025 AI infrastructure budget to $92 billion, up from $85 billion, following strong Q3 earnings. While Buffett historically avoided tech stocks, the investment reflects Alphabet's transition into a mature cash-generating enterprise.