OMAHA, Neb. — Warren Buffett, the legendary CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has long been lauded for his masterful capital allocation, delivering an extraordinary compound annual growth rate of nearly 20% over several decades. Yet in recent years, one standout investment has significantly lifted Berkshire’s fortunes: Apple Inc.
Despite Buffett’s well-known aversion to fast-moving tech plays, Berkshire holds an astonishing $67 billion stake in Apple — a company now firmly positioned within the artificial intelligence (AI) space. This holding, as of April 1, has soared 617% over the last decade, even though Apple shares are currently trading 14% below their peak.
A New AI Chapter for Apple
Apple (NASDAQ: AAPL), long a staple of Buffett’s portfolio, unveiled its proprietary AI suite — Apple Intelligence — in June 2024, launching officially in October. Integrated into the latest iPhones, iPads, and Macs, the tools include AI-driven features such as text editing, image generation, and custom emoji creation. As expected from Apple, the rollout emphasizes privacy and data security.
However, there’s growing skepticism over Apple’s position in the AI arms race. While the company remains the top holding in Berkshire’s equity portfolio, Apple recently trimmed its stake — a move that has raised eyebrows.
In its fiscal Q1 2025 results, iPhone revenue declined 1% year over year, casting doubt on the effectiveness of Apple Intelligence in boosting flagship product sales. Although CEO Tim Cook reported stronger demand in regions where the AI features are available, it hasn’t yet translated into the surge many investors anticipated.
Adding to the concerns, Apple announced a delay in its much-anticipated overhaul of Siri. Originally intended to become a more intuitive, app-integrated virtual assistant, the upgrade may not arrive until 2026 — a delay that has frustrated critics already wary of Apple’s late entry into AI.
A Lagging Entry in a Fast-Moving Race
Apple’s AI rollout came 19 months after OpenAI’s groundbreaking ChatGPT launch in November 2022, a timeline that has sparked questions about the company’s agility in adapting to emerging technologies. For a firm with virtually unlimited resources and a global talent pool, Apple’s slow response has drawn pointed criticism.
“The delay suggests Apple was caught off guard by the scale and speed of the AI boom,” said one tech analyst familiar with the company’s roadmap.
Yet some industry watchers maintain a more hopeful outlook. They argue that Apple’s measured approach reflects its broader strategy: prioritizing functionality and seamless user experience over being first to market. Rushing out an undercooked Siri update could damage the brand’s reputation for reliable, intuitive software.
The Long Game Still Holds Promise
With nearly 2.4 billion active devices in use globally, Apple is well-positioned to deploy its eventual AI upgrades at scale. If the Siri update arrives as promised in 2026 — and performs to expectations — it could reframe the narrative around Apple’s AI strategy.
Still, valuation remains a sticking point. Apple currently trades at a price-to-earnings ratio of 30, a figure that gives some investors pause. While Buffett remains a major shareholder, some analysts caution against initiating new positions at these levels.
Analysts Urge Caution Despite Buffett’s Endorsement
According to analysts at The Motley Fool, Apple was notably absent from their latest list of the top 10 stocks to buy now — a list that includes companies with the potential for outsized returns. Their Stock Advisor service boasts a total average return of 730%, far outpacing the S&P 500’s 147% since inception.
Historical picks like Netflix (up 46,000% since 2004) and Nvidia (up over 57,000% since 2005) underscore the value of identifying winners early — a distinction Apple may no longer hold in the current AI battleground.
While Apple’s future in AI may still evolve into a success story, the consensus among some market watchers is clear: the stock’s current premium valuation makes it a less compelling buy — even with Buffett’s continued backing.
Disclosure: Neil Patel holds no position in the stocks mentioned. The Motley Fool owns and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
