Berkshire Hathaway has a gargantuan public equities portfolio valued at $341 billion (as of June 17). While there are dozens of positions, a single business represents 20% of the holdings. This "Magnificent Seven" company is quietly trying to cash in on the artificial intelligence (AI) boom.
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The Omaha conglomerate, of which Warren Buffett is the executive chairman, first bought shares in Apple (AAPL -1.09%) in the first quarter of 2016. In the past decade, the consumer tech giant's stock price has surged 1,120%. Even after trimming this position since late 2023, Apple remains the largest position in Berkshire's portfolio.
NASDAQ: AAPL
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Apple has received its fair share of criticism for its slow progress in AI thus far. But this could change. The company plans to release Siri AI, a more powerful digital assistant, this year. New Apple Intelligence features, most notably improved image editing and internet browsing capabilities, will also be introduced.
The business also wants to make a splash in hardware. According to Bloomberg's Mark Gurman, Apple is planning to launch AI-powered AirPods with cameras in 2027. The company is also working on smart glasses. And a foldable iPhone model is expected later this year.
Time will tell whether this innovation pipeline will lead to greater product and service revenue. At its current scale, it will take a lot for Apple to post growth that satisfies investors.
