Buffett Dumps Amazon: 75% Stake Cut, $352M New Bet 02/18/26
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Buffett Dumps Amazon: 75% Stake Cut, $352M New Bet 02/18/26
Key Stories:
- The dominant player in AI chips recently unveiled new tie-ups with key Indian computing firms at a global AI conference in New Delhi. This comes as Microsoft, the software giant, announced a massive $50 billion investment over the next decade to boost AI adoption in developing countries, including India. Additionally, US AI startup Anthropic and Indian IT giant Infosys are partnering to develop AI agents specifically for the telecoms industry. This highlights the global race for AI dominance and Nvidia’s strategy to expand its market footprint beyond traditional tech hubs, signaling strong growth potential in emerging economies. Read more
- While Nvidia stock has reportedly seen some flatlining recently amidst increased competitive threats from other chip makers like Broadcom, a major vote of confidence has come from Meta Platforms, the parent company of Facebook and Instagram. Meta has committed to significant purchases from Nvidia, securing its supply of crucial AI hardware. This commitment is a critical development, suggesting that despite rising competition, Nvidia continues to hold a strong position with key hyperscale cloud and AI developers, potentially easing investor concerns about market share and future growth. Read more
- This substantial investment by Meta Platforms into Nvidia’s full chip stack is being seen as a powerful endorsement, coming at a time when rival chipmaker AMD’s shares have faced pressure and Google’s internal Tensor Processing Unit, or TPU, ambitions have reportedly stalled. The multibillion-dollar commitment provides Nvidia with a significant boost, reassuring investors who might have been nervous about the company’s long-term dominance. For investors, this reaffirms Nvidia’s strong market position in the high-stakes AI chip sector and suggests that its integrated hardware and software ecosystem remains a preferred choice for major tech players building out their AI infrastructure. Read more
- His conglomerate, Berkshire Hathaway, made a notable move by slashing its stake in e-commerce and cloud computing giant Amazon. Berkshire Hathaway significantly reduced its Amazon position by more than 75% in the fourth quarter. Simultaneously, the Oracle of Omaha initiated a new position, building a stake in the New York Times, marking his last new bet as chief executive officer of the conglomerate. This signals a significant re-evaluation of big tech exposure for Buffett, potentially favoring more traditional media assets in his portfolio as he makes his final investment decisions in his CEO role. Read more
- Beyond the Amazon reduction, the Oracle of Omaha engaged in more significant net selling activity. Berkshire Hathaway also dumped shares of other prominent companies, including iPhone maker Apple and banking giant Bank of America. Amidst these major exits, Buffett made one curious new purchase: a $352 million investment into a previously undisclosed stock. This reveals a broader cautious stance on certain large-cap holdings and a strategic shift, with investors keenly watching to discover the identity of this new, intriguing $352 million position, as it represents Buffett’s last fresh commitment in his long tenure. Read more
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