Nvidia, the world’s most valuable publicly listed company, reported a record $57 billion in revenue for its third quarter of 2025, exceeding Wall Street estimates. The chipmaker’s stock rose over 5% to $196 after hours trading.
The better-than-expected results have calmed investors’ concerns about the artificial intelligence (AI) bubble bursting. Nvidia’s CEO has become the first company valued at more than $5 trillion, surpassing “magnificent seven” tech companies like Alphabet and Amazon.
However, billionaire investor Peter Thiel recently sold his entire stake in Nvidia, worth around $100 million. Meanwhile, Warren Buffett’s hedge fund accumulated a $4.3 billion stake in Alphabet, signaling confidence in Google’s ability to profit from the AI era.
Buffett is stepping down as Berkshire Hathaway’s CEO and has long been skeptical of technology businesses. His investment in Google suggests he believes the company has an “economic moat” – a built-in advantage that keeps competitors out.
Google’s search engine business excelled in reducing search costs and navigating the law, which have kept competitors at bay. The company’s advertising business has sailed through several economic downturns, including the global financial crisis of 2008 and the COVID crash.
While there are risks associated with investing in Google, Buffett’s investment philosophy suggests he believes the company will weather an AI bubble burst. Consumer-facing giants like Google and Apple may be more resilient to an AI crash than newer “megacaps” like Nvidia.
Despite these positive signs, investors should remain cautious, as plenty of things could still go wrong. Younger people are using search engines less, and new tech can bypass search altogether. However, Alphabet’s vast online advertising gold, experience, and user base make it a compelling bet.
Source: https://theconversation.com/as-ai-leader-nvidia-posts-record-results-warren-buffetts-made-a-surprise-bet-on-google-270140