The most respected listed company on the planet, the US microchip manufacturer Nvidia, has reported a record $57 billion (A$88 billion) in revenue within the third quarter of 2025, beating Wall Street estimates. The chipmaker said revenue would rise again to $65 billion in the ultimate a part of the 12 months.
The higher than expected results calmed the nervousness of world investors after a turbulent week for Nvidia and general worries about the factitious intelligence (AI) bubble bursting.
Just a number of weeks ago, Nvidia was the primary company to be rated greater than $5 trillion – others within the “magnificent seven” Technology corporations: Alphabet (owner of Google), Amazon, Apple, Tesla, Meta (owner of Facebook, Instagram and WhatsApp) and Microsoft.
Nvidia shares rose greater than 5% to $196 in after-hours trading immediately following the outcomes.
Last week it was revealed that tech billionaire Peter Thiel's hedge fund had done this sold his entire share at Nvidia within the third quarter of 2025 – greater than half 1,000,000 shares price around $100 million.
But in the identical quarter, a good better-known billionaire company made a surprise bet on Alphabet, signaling confidence in Google's ability to profit from the age of AI.
Buffett's recent stake in Google
Berkshire Hathaway, based in Omaha, Nebraska within the United States, is a worldwide investment giant led for a long time by 95-year-old veteran Warren Buffett.
The latest from Berkshire Hathaway quarterly filing revealed that the corporate acquired a $4.3 billion stake in Alphabet within the September quarter.
The size of the investment suggests a strategic decision – especially because the same filing showed that Berkshire had made significant investments sold its huge Apple stake. (Apple stays Berkshire's largest single stock, currently price about $64 billion.)
Buffett is about to resign as CEO of Berkshire. Analysts speculate that this pre-retirement investment could provide a clue as to where lasting gains within the digital economy might come from.
Buffett's track record of picking winners using “moats”
Buffett selected many winners over the a long time, from American Express to Coca Cola.
Still, he has long expressed skepticism about technology corporations. He also has form in the case of getting big tech bets incorrect, most notably his disappointing performance Investment in IBM a decade ago.
With Peter Thiel and Japan's richest man Masayoshi son each recently Leaving Nvidiait could be tempting to give it some thought “Oracle of Omaha” shows up because the party involves an end.
But this formulation misunderstands Buffett's Investment philosophy and the character of Google's business.
Buffett just isn’t late to AI. He's doing what he's all the time done: he's betting on an organization that he believes is oneEconomic moat“: a built-in advantage that keeps the competition away.
His company's latest move suggests that Google's moat will widen within the age of generative AI.
Two alligators within the Google moat
Google won Search engine wars within the late Nineties since it excelled in two key areas: reducing search costs and navigating the law.
Over the years, these benefits have acted like alligators in Google's moat, keeping the competition at bay.
Google understood sooner and higher than anyone that reducing the fee of search – the effort and time to search out reliable information – is the Internet's most significant economic opportunity.
Joi Ito/Wikimedia Commons, CC BY
The company founders Sergey Brin and Larry Page began with a revolutionary search algorithm. The real innovation, nonetheless, was the business model that followed: the search was given away totally free after which targeted promoting was auctioned alongside the outcomes.
Google Ads brings in now Tens of billions Dollars per 12 months for Alphabet.
But establish this business model wasn't easy. Google needed to muddle through Intellectual property law before the Internet and global Fear of change.
The search giant responded Copyright and trademark lawsuits and internationally managed regulatory attentionand at the identical time protects its brand Scandals.
These business superpowers will matter as generative AI transforms the best way we search and brings a brand new wave of control mental property.
Berkshire Hathaway likely views Google's track record in these areas as a bonus that competitors can't easily copy.
What happens when the AI bubble bursts?
Perhaps the genius of Berkshire's investment lies in recognizing that a burst of the AI bubble could topple a number of the “magnificent seven” tech leaders – but perhaps not their longest-lived members.
Consumer-focused giants like Google and Apple would likely survive an AI crash just high-quality. Googles Core business of promoting sailed through the worldwide financial crisis of 2008, the COVID crash and the inflationary bear market of 2022.
In contrast, newer “Megacaps” like Nvidia could struggle in a downturn.
Lots could still go incorrect
There is not any guarantee that Google will give you the option to profit from the brand new economic opportunities of AI, especially given the various existing mental property rights and regulations Risks.
Google's brand, like Buffett, could do it just get old. Younger people use search engines like google and yahoo less often, but more often using AI or social media to get their answers.
New technologies similar to “agentic shopping” or “Recommendation systems”can increasingly bypass the search altogether.
But with its streams of internet marketing gold, its experience dating back to the dawn of the industrial Internet, and the power to make use of its platforms to instill recent habits amongst its massive user base, Alphabet is much from a foul alternative.
