As AI leader Nvidia posts record results, Warren Buffett’s made a surprise bet on Google

Nvidia reported a blowout Q3 2025 with record revenue of $57 billion, topped guidance by the market and forecasted another jump to $65 billion for year-end, sending the stock up ~5% to $196 and easing near-term AI-bubble concerns despite recent high-profile exits such as Peter Thiel’s sale of ~500,000 shares (~$100m). In the same quarter Berkshire Hathaway built a $4.3 billion position in Alphabet while trimming its Apple stake, a move interpreted as Warren Buffett betting on Google’s enduring advertising-driven ‘moat’ and regulatory/legal resilience as generative AI reshapes search economics. The article flags that Alphabet still faces material IP, regulatory and user-behavior risks that could limit AI upside, but suggests Buffett’s allocation reflects a defensive preference for durable cash flows versus potentially more cyclically exposed AI leaders like Nvidia.

Analysis

Nvidia reported a record $57 billion of revenue in Q3 2025, beating Wall Street estimates and guiding to a further rise to $65 billion for the year-end; the print and guidance pushed NVDA shares more than 5% higher to about $196 in after-hours trading and helped calm investor concerns after a turbulent week that included Peter Thiel’s sale of over 500,000 shares (~$100 million). The company’s recent milestone as the first public firm to exceed a $5 trillion valuation underscores its central role in the AI cycle, but the article frames Nvidia as more cyclically exposed should an AI “bubble” deflate. Berkshire Hathaway accumulated a $4.3 billion stake in Alphabet during the September quarter while materially trimming its Apple holding (Apple remains Berkshire’s largest position at roughly $64 billion), a move the article interprets as Buffett favoring Google’s advertising-driven ‘‘moat’’ and legal/regulatory navigation amid generative-AI shifts. Alphabet’s strengths—large ad revenues, long experience reducing search costs and regulatory resilience—support durable cash flows, yet the company faces material risks from intellectual-property and regulatory headwinds and changing user behavior as younger cohorts adopt alternative discovery tools and agentic recommender systems.

Key Decisions for Investors

• Consider maintaining or adding a disciplined, sized exposure to NVDA to capture near-term AI demand implied by $57B revenue and $65B guidance, but size positions for heightened volatility and monitor stakeholder exits such as Thiel’s sale as a sentiment signal
• Evaluate increasing exposure to Alphabet as a defensive AI play following Berkshire’s $4.3B stake—positioning that favors durable ad cash flows and legal/regulatory experience—but limit allocation pending clarity on monetization of generative AI and ongoing IP/regulatory developments
• Trim concentrated positions in purely cyclical AI beneficiaries or hedge them (options or relative-value trades) to protect against a potential AI-bubble correction, and prioritize monitoring next-quarter guidance, regulatory filings, and changes in user-behavior metrics as triggers for re-rating