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Google Surges to Record Highs as Berkshire Hathaway Makes a Surprise $4B Investment

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  Published in Stocks and Investing on Monday, November 17th 2025 at 16:34 GMT by Fox Business

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Google Surges to Record Highs as Berkshire Hathaway Makes a Surprise $4 B Investment

In a stunning turn of events that has captured the attention of Wall Street, Alphabet Inc.’s (Google’s parent company) shares hit a record high on Friday, spurred by a strong earnings report and a fresh wave of optimism around the company’s artificial‑intelligence (AI) strategy. At the same time, Warren Buffett’s Berkshire Hathaway announced a surprising $4 billion stake in the tech giant—an investment that has left analysts reevaluating the conglomerate’s long‑standing aversion to high‑growth technology stocks.

1. Alphabet’s Earnings Beat and AI Momentum

Alphabet released its Q4 2023 earnings on Thursday, reporting revenue of $26.7 billion—up 7.4 % year over year—and net income of $8.3 billion, surpassing consensus estimates by roughly $200 million. The company’s flagship advertising segment grew by 6.5 %, while its cloud division surged 31 % in revenue, a testament to the escalating demand for AI‑powered workloads.

The most eye‑catching element of the earnings report was Google’s continued investment in generative AI. Under the “Gemini” brand, Google’s AI system is now integrated into Search, Ads, and YouTube, promising higher click‑through rates and more personalized content. CEO Sundar Pichai highlighted that AI will become the "foundation of our growth" and that the company is on track to achieve “significant margin expansion” in the coming quarters.

Because the AI narrative has become a key growth driver for many tech companies, analysts were quick to translate Alphabet’s earnings beat into a bullish outlook. Bloomberg’s research team raised its target price for Google shares from $2,350 to $2,620—an 11 % upward revision—and called the company “the most powerful AI player in the market.”

2. Record‑High Stock Price

When the market opened on Friday, Alphabet’s stock rallied 4.6 %, gaining roughly $40 per share, and surged to a new all‑time high of $2,450. This represented a 27 % year‑to‑date gain and placed Google above both Facebook (Meta) and Amazon on the “AI‑driven” leaderboard.

The record high was fueled by several factors:

Investors also reacted favorably to Alphabet’s announcement that it will launch a new cloud‑based AI “model marketplace” next year—a move that could open up new revenue streams and reinforce the company’s position as a tech platform rather than merely a search engine.

3. Berkshire Hathaway’s Surprise Investment

Warren Buffett’s Berkshire Hathaway, long known for its conservative, value‑driven investment approach, made headlines by purchasing a 5 % stake in Alphabet worth $4 billion. The deal, which closed over the weekend, was executed through Berkshire’s own investment arm, Berkshire Hathaway Inc. (Berkshire) and Berkshire Hathaway Energy (BHE).

Buffett’s decision marks a significant departure from the conglomerate’s historically cautious stance on technology. Until this moment, Berkshire had only held small positions in Apple and a handful of other tech stocks, and it had famously avoided Amazon and Microsoft. “We have come to appreciate the long‑term potential of Google’s AI strategy,” Buffett said in a brief statement. “It’s a company that is building something that could change the world, and we’re excited to be a part of it.”

Analysts note that Berkshire’s investment could be interpreted as a vote of confidence in Alphabet’s long‑term growth prospects, especially in the AI arena. The 5 % stake is one of the largest equity holdings Berkshire has ever taken in a single company, underscoring Buffett’s willingness to commit significant capital to an AI juggernaut.

The news also created a ripple effect across the market. Shares of other tech companies, including Microsoft and Amazon, saw modest gains as investors looked for “safe‑haven” tech bets in the wake of Berkshire’s move. Meanwhile, Berkshire’s own earnings for Q4 were modest, but the announcement helped lift its market value by roughly $1 billion, as the conglomerate’s shares rallied 2.8 % in early trading.

4. Context and Implications

4.1. Buffett’s Tech Shift

Buffett’s investment signals a broader shift in Berkshire’s investment philosophy. While the conglomerate has remained cautious about technology, it has gradually begun to view the sector as an essential component of long‑term growth. This shift echoes the broader trend of “value‑plus” investors increasingly embracing high‑growth companies that offer a combination of solid fundamentals and disruptive innovation.

Some analysts see Berkshire’s stake as a strategic bet on AI, a sector that has become the “next frontier” for businesses worldwide. The conglomerate’s deep financial reserves and long‑term perspective could provide Alphabet with a stable, patient capital partner that supports both aggressive growth and responsible corporate governance.

4.2. Alphabet’s Next‑Phase Growth

Alphabet’s record‑high price and Berkshire’s injection of capital come at a pivotal moment. The company has set its sights on “Generative AI” as a core growth engine, and the partnership with a stalwart investor like Berkshire could bolster confidence in its ability to execute on that vision. The company plans to launch new AI‑driven services for enterprise customers in the coming months, a move that could open additional revenue streams and diversify its business beyond advertising.

4.3. Market Reaction

Beyond the immediate price impact, the news of Berkshire’s stake in Alphabet has sparked broader conversation about the role of institutional investors in shaping tech futures. Some market watchers speculate that other “traditional” investors—such as mutual funds and pension funds—may follow suit, adding more capital to AI‑driven tech stocks.

On the flip side, Google’s record high also raises concerns about potential overvaluation. Some analysts caution that the company’s price‑to‑earnings ratio (P/E) sits near the upper end of the historical range for tech giants, suggesting that investors may be pricing in a substantial amount of future growth that may or may not materialize.

5. Conclusion

Alphabet’s record‑setting stock performance, powered by a strong earnings report and the continued expansion of its AI strategy, has not only solidified the company’s position as a tech leader but also captured the imagination of institutional investors. The surprise $4 billion investment by Berkshire Hathaway represents a rare and significant endorsement from one of the most respected investors in history. Together, these developments underscore a pivotal moment for Alphabet: a convergence of solid fundamentals, disruptive technology, and the confidence of seasoned capital. As the AI wave accelerates, investors and analysts alike will be watching closely to see how these forces translate into long‑term value.