Warren Buffett's Berkshire Hathaway Just Exited Its Stake in T-Mobile and Loaded Up on an Artificial Intelligence (AI) Infrastructure Stock That's Risen 7,850% Since Its IPO

Berkshire Hathaway's latest 13F filing reveals a complete exit from its over $1 billion T-Mobile (TMUS) position, despite the mobile carrier's strong performance, likely due to valuation concerns. Concurrently, Berkshire disclosed a previously confidential, significant new stake in Nucor (NUE), valued at over $850 million, acquired in Q1. This investment positions the traditional steel company as an artificial intelligence infrastructure play due to its role in data center construction, aligning with Berkshire's interest in U.S.-based commodity firms.

Analysis

Berkshire Hathaway's second-quarter 13F filing reveals a strategic portfolio rotation, marked by the complete divestiture of its T-Mobile (TMUS) position, valued at over $1 billion, and the disclosure of a new, over $850 million stake in steel producer Nucor (NUE). The exit from T-Mobile occurred despite the carrier's strong operational execution, including a 14% year-over-year increase in diluted EPS and 12% growth in its 5G broadband customer base. This move appears to be a valuation-based decision, as T-Mobile's stock trades near all-time highs with a forward price-to-earnings ratio exceeding 23, suggesting Berkshire opted to realize gains on a fairly priced asset. Conversely, the investment in Nucor, acquired confidentially in the first quarter, positions Berkshire in a traditional commodity company with a significant tailwind from the artificial intelligence sector, as Nucor supplies essential steel components for data center construction. This investment comes despite Nucor's near-term fundamental challenges, including significantly lower earnings in the first half of the year and guidance for further margin compression. The position aligns with a broader Berkshire theme of investing in U.S.-based commodity producers and may also be a tactical play on potential future benefits from steel tariffs, which could improve pricing power for domestic firms.

Key Decisions for Investors

• The Berkshire exit from T-Mobile, despite strong company performance, signals a potential valuation ceiling, prompting investors to assess whether the stock's forward P/E of over 23 justifies its growth prospects.
• Nucor's endorsement by Berkshire validates its role as an AI infrastructure supplier, however, investors must balance this long-term catalyst against current headwinds of margin compression and weaker near-term earnings guidance.
• Investors should monitor developments regarding potential steel tariffs, as their implementation could serve as a significant catalyst for Nucor's profitability and justify its valuation, which is currently elevated for the steel sector.
• This portfolio shift from a high-multiple telecom to a commodity-linked industrial suggests a strategic preference for tangible, U.S.-based assets with infrastructure exposure, warranting a review of similar companies that could benefit from this theme.