$GOOGL (Alphabet Inc Class A) shares have been rallying recently. This coincided with the news that came out recently that Berkshire Hathaway initiated a sizable position in Alphabet during the third quarter. The purchase of 17.8 million shares—worth roughly $ 4.3 billion—stands out not only because it marks Berkshire’s first meaningful move into AI-linked equities, but also because Alphabet was the only stock the conglomerate added during the period. After years of sitting on record cash while investors piled into the Magnificent Seven, Buffett’s shift suggests increasing conviction in Alphabet’s ability to monetize AI at scale.
That conviction aligns with Alphabet’s accelerating momentum in artificial intelligence and semiconductor competitiveness. The company’s market value has surged by nearly $ 1 trillion since mid-October, driven by strong reception for its Gemini AI model and mounting demand for its in-house tensor processing units (TPUs). Alphabet is now closing the valuation gap with Nvidia, sitting roughly $ 590 billion behind the chip leader. Investors are increasingly reconsidering the assumption that Nvidia will indefinitely dominate AI compute infrastructure.
Recent reports that $META (Meta Platforms Inc) may adopt Google’s TPUs—both through long-term data center deployments and near-term cloud rentals—underscore this shift. Similarly, Alphabet’s expanded multibillion-dollar agreement with Anthropic, granting the AI startup access to up to one million TPUs, marks one of the most significant endorsements yet of Google’s chip technology. This strengthens Alphabet’s cloud platform, which is already showing rapid profitability expansion, and highlights the strategic advantage of vertically integrating AI research, chip design, and cloud computing.
TPUs, originally created in 2013 and refined through seven generations, increasingly offer a specialized alternative to Nvidia’s GPUs. Their custom architecture can deliver superior efficiency for certain machine-learning tasks, and their lower operating cost appeals to companies facing acute GPU shortages. Though TPUs remain less flexible than GPUs and cannot fully replace them, adoption by firms including Salesforce, Midjourney, Safe Superintelligence, and Anthropic points to growing credibility. The possibility of TPU availability through additional cloud providers further broadens the addressable market.
Still, Nvidia retains a commanding lead due to its mature ecosystem, rapid upgrade cycles, and unmatched versatility. But Alphabet’s recent wins signal an AI hardware landscape that is becoming more competitive and less dependent on a single supplier. For investors, the confluence of Berkshire’s vote of confidence, Alphabet’s product traction, and its strengthening cloud economics supports a thesis that Google is entering a new phase of AI-driven value creation with material long-term upside potential. I do have a diversified portfolio but $GOOG (Alphabet) is now my largest single-stock position.
... Show More
We use our own and third-party cookies on our websites to enhance your experience, analyze traffic, and for security and marketing. For more info, see our Cookie Policy or go to Manage Settings.
Privacy Preference Center
When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.
More information
Manage Consent Preferences
Strictly Necessary Cookies
Always Active
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Cookie List
label
ConsentLeg.Interest
label
label
label
Sat Mar 07 2026 21:03:12 GMT+0000 (Coordinated Universal Time)
