So why is the Oracle of Omaha’s company reducing its stake in Apple? Investors will have to do some guessing on that one, but it looks like Buffett and his teams of analysts are becoming more bearish in their outlook for the stock market at large. With the S&P 500 index up roughly 21% across this year’s trading, Berkshire has opted to reduce its stock holdings and build up its cash position instead.

The combination of valuation concerns and a risky macroeconomic and geopolitical backdrop could be factors in the conglomerate’s strategic shift. So while artificial intelligence presents big growth opportunities, Berkshire’s recent moves with Apple stock are a reminder that it’s best not to put all eggs in one basket.

Jennifer Saibil: Amazon (NASDAQ: AMZN) has nowhere near the same amount of clout in Buffett’s portfolio as Apple, accounting for only 0.7% of Berkshire Hathaway’s stock holdings. Buffett has said that it was one of his investment managers who made that purchase, although the portfolio has benefited from owning this top AI stock.

Most people still think of Amazon first as the king of e-commerce. The average Amazon Prime member may not know much about the Amazon Web Services (AWS) segment, but it has emerged as the global leader in the cloud infrastructure industry. It has 31% of that market, although Microsoft‘s Azure is running a reasonably close second with 25%.

Generative AI has become a major component of all of the major cloud players’ attempts to stay competitive and capture market share, but as the leader, Amazon has the most to prove, and to gain. It has released a slew of generative AI services to meet every need and budget, and it’s even developing its own AI processors, which enables it to offer a broader range of prices to its cloud services clients.

Over the past few months, CEO Andy Jassy has made several mentions of how big this opportunity is. “About 90% of the global IT spend is still on-premises,” he said in August. “And if you believe that equation is going to flip, which I do, there’s a lot of growth ahead of us in AWS as the leader.” He added, “I also think that generative AI itself and AI as a whole, it’s going to be really large.”

It also bears mentioning that Amazon’s AI is a lot more than AWS and the generative sort. The company uses AI to parse its unmatched hoard of consumer-shopping data, and the results of those analyses drive its e-commerce sales, helping it offer better side-by-side comparisons and more accurate recommendations. Its data also informs its logistics network, helping it to get products to customers more rapidly and at lower costs.

It also applies AI to its digital advertising business, offering partners the same rich data, and exposure to shoppers who are already looking for their products. It’s now introducing this on its ad-supported streaming sites, kicking up the ad business another notch.

Amazon’s AI story is just taking off, and investors should join Buffett for the ride.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Warren Buffett’s AI Bets: 24.1% of Berkshire Hathaway’s $287 Billion Stock Portfolio Is Invested in These 2 Artificial Intelligence Stocks was originally published by The Motley Fool