Key Highlights

Berkshire Hathaway purchased approximately $17 billion of Alphabet shares during Q2, elevating it to Berkshire's third-largest position with about 106 million shares.

Greg Abel, Berkshire's CEO, described Google as a "significant player" in artificial intelligence, referencing insights gained from AI adoption within Berkshire's portfolio.

Berkshire's initial $10 billion position was established about 15 months prior at a 6.5% discount to market price.

A U.S. federal judge denied the Department of Justice's demand that Google divest its AdX ad platform.

Analyst consensus on GOOGL stands at Strong Buy across 28 analysts, with a mean price target of $425.88—indicating potential upside of 26%.

Shares of Alphabet (GOOGL) are gaining ground in Thursday's pre-market session, trading near $337.12, a 0.63% increase. The upward momentum stems from two distinct catalysts: a substantial endorsement from Berkshire Hathaway and a favorable legal decision concerning Google's advertising technology operations.

Berkshire Builds a Major Alphabet Stake

During a Wednesday CNBN appearance, Berkshire CEO Greg Abel disclosed that the investment giant accumulated approximately $17 billion in Alphabet shares throughout the second quarter. This acquisition represented the most substantial portfolio addition Berkshire made during that period.

The move is notable given Berkshire's long-standing caution toward technology names. Under Warren Buffett, the conglomerate historically avoided most tech stocks, with Apple being its major exception—though that stake has been substantially reduced in recent years. Abel, who succeeded Buffett as CEO at the start of 2025, is now putting Berkshire's capital behind a second major technology franchise.

Berkshire's current holdings total roughly 106 million shares across Alphabet's Class A and Class C stock, with a present market value near $36.6 billion. The position now ranks as Berkshire's third-largest equity investment.

According to Abel, the investment decision drew from tangible observations across Berkshire's diverse business holdings. The conglomerate's portfolio spans numerous sectors, providing direct insight into artificial intelligence implementation and its practical value.

"We have a lot of visibility from within our companies as to how we're using AI, what type of benefits it's delivering, so that brought incremental interest, and then we saw Google as a significant player," Abel told CNBC's Becky Quick.

Berkshire initially entered its Alphabet position approximately 15 months earlier with a $10 billion investment executed at a 6.5% discount. Abel noted that he personally suggested that discount percentage, which received Warren Buffett's approval.

Federal Judge Sides with Google on AdX Platform

Complementing the Berkshire development, a federal judge ruled Wednesday against the Justice Department's petition compelling Google to divest its AdX advertising exchange. The judgment eliminates a significant regulatory uncertainty surrounding Alphabet's operations.

The case traces back to the DOJ's 2023 antitrust lawsuit accusing Google of monopolizing digital advertising technology, and the ruling is the latest chapter in a broader wave of antitrust actions targeting Google's search and ad businesses in the United States. It marks a meaningful shift in outcome, as Google has faced adverse rulings in separate cases concerning its search distribution practices.

The ruling allows Google to maintain ownership of AdX without mandated divestiture, delivering enhanced predictability regarding Alphabet's advertising technology revenue pipeline. That predictability matters because advertising remains Alphabet's largest revenue source, and forced divestiture of key ad tech assets had been among the most consequential remedies regulators sought.

The combination of these developments is prompting increased investor interest in the stock as Thursday's trading approaches.

Abel highlighted an additional indirect advantage Berkshire stands to gain from AI expansion. Escalating data center requirements are pushing electrical power demand upward, potentially benefiting Berkshire Hathaway Energy's operations.

Analyst Community Maintains Positive Outlook

The analyst community continues to express confidence in GOOGL. Among 28 analysts tracking the stock, 24 maintain Buy ratings while four assign Hold ratings. Currently, zero analysts recommend selling.

The consensus price target stands at $425.88, suggesting approximately 26% appreciation potential from present trading levels (GOOGL).

Alphabet ranks among five major hyperscalers—including Microsoft, Meta, Amazon and Oracle—channeling significant resources into AI infrastructure development. Goldman Sachs projects worldwide hyperscaler capital spending could reach approximately $1 trillion by 2026. For investors tracking the sector, upcoming items to watch include further developments in the remaining antitrust proceedings and Berkshire's next disclosures of portfolio changes in its quarterly filings.

During the identical quarter when Berkshire expanded its Alphabet holdings, it also grew its Delta Air Lines stake by 44%, representing roughly $1.6 billion in additional investment.

Source: Blockonomi