Shares of Alphabet surged Monday in after-hour trading, defying broader declines in the technology sector in Wall Street, after Warren Buffett’s Berkshire Hathaway disclosed a substantial new investment in the Google parent company—an unexpected move that stands among the conglomerate’s biggest technology plays in recent years.
Alphabet stock climbed 3.1%, outperforming most of its peers at the start of the week. According to Berkshire’s latest 13F filing, as of September 30, the company held roughly $4.3 billion in Alphabet stock, making it Berkshire’s tenth-largest equity position. The development surprised many observers who noted Buffett’s historical reluctance to invest heavily in high-growth technology firms. Notably, Buffett has long characterized Apple, Berkshire’s largest single holding, as a consumer products firm rather than a traditional tech company.
Alphabet has been one of the top-performing stocks in 2025, rallying 46% as investors continue to favor the company’s advancing artificial intelligence initiatives and accelerated growth in its cloud computing segment. Previously saddled by slim margins, Google Cloud has now become a significant earnings contributor.
Despite its impressive performance, Alphabet trades at a relative valuation discount. The shares are priced at 25 times projected earnings over the next 12 months—below Microsoft’s 29.47 and Nvidia’s 29.77, based on data from LSEG. This discrepancy, together with Alphabet’s robust cash flows and commanding market presence, likely enhanced the company’s appeal to Buffett’s investment team.
