<p>Warren Buffett's retirement as CEO marked the end of an era at <strong>Berkshire Hathaway</strong>. While Berkshire remains committed to long-term ownership of high-quality compounders, some recent portfolio moves under new leadership suggest that there is a greater comfort with sophisticated, high-growth opportunities that sit at the center of artificial intelligence (AI).</p>
<p>The evidence appears clearly in Berkshire's recent handling of two &#34;Magnificent Seven&#34; stocks. During the third quarter of 2025, Berkshire initiated a stake in <strong>Alphabet</strong>. During the first quarter of this year, which was Greg Abel's first full quarter as CEO of Berkshire, the company more than tripled its Alphabet position to nearly 54 million shares. At the same time, filings show that Berkshire completely exited its long-standing -- albeit modest -- investment in Amazon. </p>
<p>These moves suggest that Abel is willing to differentiate among mega-cap technology leaders. Such selectivity could open the door to other companies that combine technological leadership with durable competitive advantage. One name that I think increasingly fits Berkshire's investment profile is <strong>Nvidia</strong> <span class="ticker-mention inline-flex items-center font-bold">(NVDA <span class="ml-1 text-green-900">+0.83%</span>)</span>. Read on to learn why.</p>
<div><img alt="Nvidia headquarters with company logo on a sign." width="880" height="528" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzczNTYvbnZpZGlhLWhlYWRxdWFydGVycy13aXRoLW52aWRpYS1zaWduLWluLWZyb250LTMyLnBuZyZ3PTM4NDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzczNTYvbnZpZGlhLWhlYWRxdWFydGVycy13aXRoLW52aWRpYS1zaWduLWluLWZyb250LTMyLnBuZyZ3PTM4NDA"/>
<p>Image source: Nvidia.</p>
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<h2>Nvidia is diversifying its business model</h2>
<p>It's no secret that Nvidia holds a commanding position in the graphics processing unit (GPU) market over its primary rival, <strong>Advanced Micro Devices</strong>. Nvidia's CUDA platform has become the de facto standard for AI developers, creating a powerful moat in hardware and software that competitors are struggling to replicate at scale.</p><div><div id="foolcom_sidebar_top_container"><div><div><div></div><div></div><div></div></div></div><div></div></div></div>
<p>Rather than resting on this dominance alone, Nvidia is systematically expanding its ecosystem across the entire AI stack. The company is deepening its involvement in high-performance networking through a combination of internal development and strategic partnerships. For example, in October, Nvidia invested $1 billion into <strong>Nokia</strong> in a partnership focused on AI-native radio access networks (RAN) and edge infrastructure.</p><div></div>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Nvidia Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL05WREEucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL05WREEucG5nJnc9MTI4"/></div><div><h2>NASDAQ: NVDA</h2><div>Nvidia</div></div></div><div><div><div>Today's Change</div><div>(0.83%) $1.62</div><div>Current Price</div><div>$196.45</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div><span class="inline-flex items-center gap-1">$4.7T<span class="group/market-cap relative inline-flex shrink-0 align-middle"><span></span><span id="_R_26kf5tminr5uamivb_" class="sr-only">Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.</span><span class="pointer-events-none absolute z-50 mt-1 w-64 rounded-md bg-gray-900 px-3 py-2 text-xs leading-snug whitespace-normal! wrap-break-word normal-case! text-gray-50 opacity-0 shadow-lg transition-opacity group-hover/market-cap:opacity-100 group-focus-within/market-cap:opacity-100 top-full right-0 left-auto translate-x-0">Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.</span></span></span></div><div>Day's Range</div><div>$193.99 - $197.41</div><div>52wk Range</div><div>$157.34 - $236.54</div><div>Volume</div><div>1.7M</div><div>Avg Vol</div><div>159M</div><div>Gross Margin</div><div>74.15%</div><div>Dividend Yield</div><div>0.14%</div></div></div></div></section>
<p>Nvidia is also quietly supporting data center build-outs through targeted investments in neocloud providers like <strong>CoreWeave</strong> and optical component leaders such as <strong>Coherent</strong> and <strong>Lumentum</strong>. Additionally, Nvidia's NVLink Fusion platform is helping enable new partners like Marvell to develop custom AI chips that can integrate tightly with Nvidia's architecture.</p><div><div id="in_line_article_pitch_container"><div><div><div><div></div></div><div><div></div><div></div><div></div></div></div></div><div></div></div></div>
<p>Building a diversified business model reduces Nvidia's reliance on any single data center product while pushing the company closer to the center of the entire AI infrastructure build-out.</p>
<h2>Nvidia has strong profitability, robust stock returns, and an attractive valuation</h2>
<p>Throughout the AI revolution, Nvidia has translated its market leadership into exceptional financial success. Nvidia's revenue and earnings have risen exponentially thanks to AI-driven demand, which has contributed to share price appreciation of more than 1,000% over the last few years.</p>
<p>What's encouraging is that Nvidia has supplemented its strategic investments by expanding its dividend program as well. This demonstrates management's confidence to continue generating robust free cash flow and a willingness to share excess profits with investors.</p>
<p>From a valuation standpoint, Nvidia's forward price-to-earnings (P/E) multiple has become increasingly reasonable relative to its growth prospects. While Nvidia's forward P/E is notably higher than the long-run average <strong>S&amp;P 500</strong> forward earnings multiple of roughly 17, Abel has a bigger appetite for premium valuations, as long as they aren't overstretched.</p>
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<p>NVDA PE Ratio (Forward) data by YCharts.</p>
<p>Given the trends in the chart above, Nvidia stock is clearly no longer as expensive as it was during earlier phases of the AI cycle. Currently, Nvidia looks more like a value stock -- precisely the kind of business that Berkshire historically seeks out when it identifies a new business capable of compounding capital over the long run.</p>
<h2>Nvidia looks like a strong match for Berkshire's investment discipline</h2>
<p>Berkshire's classic investment criteria -- wide economic moats, strong C-Suite, understandable businesses, and the potential for long-term compounding -- align closely with Nvidia's mold.</p>
<p>The company's brand strength in AI chips and expanding infrastructure ecosystem function as formidable barriers to entry and present high switching costs for its customers. Nvidia's steady diversification into networking and custom-chip architectures also helps give it a more resilient, durable profile compared to pure semiconductor plays.</p>
<p>Under Abel's leadership, Nvidia could emerge as a logical technology investment because it offers exposure to secular AI tailwinds without requiring Berkshire to abandon its preference for steady growth from blue chip businesses. In a portfolio already touching many of the companies shaping the next industrial era, Nvidia represents a compelling candidate for a long-term holding.</p><div id="article_pitch_container"><div><div><div></div><div></div><div></div><div></div><div></div><div></div><div></div></div></div><div></div></div><div id="promobox_container"><div><div><div></div><div></div><div></div><div></div></div></div><div></div></div>

NVDA

BRK.B

BRK.A

<p>The article suggests Nvidia is a potential next trillion-dollar AI stock and a strong candidate for Berkshire Hathaway's portfolio under CEO Greg Abel. It highlights Nvidia's dominant GPU market position, CUDA moat, and diversification into networking and custom chips. With exponential revenue growth, robust profitability, and a more reasonable forward P/E valuation, Nvidia aligns with Berkshire's criteria for wide economic moats and long-term compounding.</p>

- Warren Buffett's retirement as CEO marks the end of an era for Berkshire Hathaway, which is adjusting its investment strategy under new leadership.  
- Recent portfolio changes indicate a greater acceptance of high-growth opportunities, particularly in AI, highlighted by Berkshire's increased stake in Alphabet and exit from Amazon.  
- Nvidia's diversified business model and strong market presence align well with Berkshire's investment criteria, suggesting it could be a strategic technology investment moving forward.

Motley Fool

NVIDIA

Berkshire Hathaway B

Berkshire Hathaway

XI2CSOPNVDA

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GraniteShares 2x Long NVDA Daily ETF

AXS 1.5X NVDA Bear Daily ETF

T-Rex 2X Long NVIDIA Daily Target ETF

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XL2CSOPNVDA

GraniteShares 2x Short NVDA Daily ETF

Direxion Daily NVDA Bull 2X Shares

Direxion Daily BRKB Bull 2X Shares

YieldMax BRK.B Option Income Stgy ETF

Roundhill BRKB WeeklyPay ETF

XL2CSOPBRKB

ProShares Ultra NVDA

Leverage Shares 2X Long NVDA Daily ETF

Leverage Shares 2x Cpd Acclrtd NVDAMnETF

NVDA WeeklyPay ETF - Roundhill

GraniteShares YieldBOOST NVDA ETF

xETFs NVDA Daily Income ETF

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XI2CSOPNVDA-U

Roundhill Daily 2X Lon Mag Sev ETF

VanEck Semiconductor ETF

iShares Semiconductor ETF

Direxion Semicon Bull 3X

Invesco PHLX Semiconductor ETF

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First Trust Nasdaq Food & Semicon

Alphabet

Alphabet - C

Amazon

Nokia Oyj

Coreweave

Coherent Corp.

Lumentum

Marvell Tech

S&P 500

NVIDIA Corporation

Prediction: Following Alphabet, This Could Be the Next Trillion-Dollar Artificial Intelligence (AI) Stock Greg Abel Adds to Berkshire's Portfolio