Warren Buffett and Greg Abel Have Been Loading Up on This Top Artificial Intelligence (AI) Stock That's Trading at a Bargain-Basement Price
Is this the time to be greedy that Buffett talks about?
Overview
Warren Buffett delighted the market when Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) announced a new stake in Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) in the 2025 third quarter, and Greg Abel added to the position when he tripled it in the 2026 first quarter, his first as chief executive officer. Alphabet represents 7.8% of Berkshire's equity portfolio, making it one of the largest positions.
Although Alphabet reported fantastic growth in the 2026 second quarter, the stock plunged after the earnings report last week. The market was not pleased with management's plans to devote as much as $205 billion to capital expenditures for the full year, which already sent free cash flow into negative territory in the first quarter for the first time in more than a decade.
Details
But as the stock falls, it's trading at a bargain-basement price. Here's why it looks like a great deal rather than a value trap.
Source
Originally published at www.fool.com.