In the third quarter of 2025, Berkshire Hathaway took a multi-billion-dollar position in Alphabet, marking the 13th largest holding in Warren Buffett’s portfolio and closing a long-standing regret over missing the company’s early run. Buffett had famously lamented in 2017 that he underestimated Alphabet’s potential, despite his insurance subsidiary paying double-digit dollars per click for search ads. Since that interview, Alphabet’s shares surged over 550%, driven by consistent double-digit revenue growth across Search, YouTube, Cloud and new AI features. Buffett’s move reflects renewed confidence in the firm’s competitive moat and network-driven data advantage, which he now views as comparable to the fortress he admires in his other major tech holding, Apple.

Cantor Fitzgerald analyst Deepak Mathivanan upgraded his 12-month forecast for Alphabet in early 2026, raising his target to imply roughly 14% upside from current levels and affirming a Buy rating. He cited the company’s leadership in artificial intelligence—highlighted by the Gemini and Veo platforms—and its unparalleled scale in search data as key growth drivers. Alphabet’s annual revenues climbed from about $283 billion in 2022 to over $385 billion by late 2025, underscoring the firm’s ability to monetize expanding user engagement. With shares up nearly 70% over the past year and early-year momentum pushing Alphabet back to the No. 2 market-cap position globally, the firm’s strong fundamentals and AI pipeline underpin this positive outlook.