How Buffett's $7.7 Billion Quantum Computer Stock Allocation Reveals a Deeper Investment Strategy

Warren Buffett’s Berkshire Hathaway currently holds approximately $7.7 billion across two major technology companies with significant quantum computing ambitions. Yet here’s where most investors miss the mark: Buffett didn’t buy these quantum computer stocks because he was betting on quantum mechanics breakthroughs. In fact, legendary physicist Richard Feynman famously stated that “no one understands quantum mechanics”—and Buffett himself has long preached that investors should only put money into businesses they can comprehend. So what’s really going on in this quantum computing stock portfolio?

The Two Companies Behind Buffett’s Quantum Computing Bet

You might expect Buffett to have quietly accumulated shares in specialized quantum players like D-Wave Quantum (QBTS), IonQ (IONQ), or Rigetti Computing (RGTI). That’s not what happened. Instead, Berkshire Hathaway built substantial positions in two tech giants that happen to be investing heavily in quantum computing: Amazon and Alphabet.

The company first added Amazon to its portfolio in 2019, a decision that Buffett later admitted was overdue—he confessed to being “an idiot” for not investing earlier. More recently, in 2025, Berkshire made a significant move into Alphabet, purchasing over 17.8 million shares of the search and advertising giant.

The Quantum Computing Hidden Assets

Amazon’s cloud division, Amazon Web Services (AWS), operates Amazon Braket—a cloud platform that enables researchers to develop and test quantum computing algorithms and hardware. The company recently introduced its Ocelot quantum computing chip, which achieves quantum error reduction of up to 90%, a major milestone in making quantum systems more practical.

Alphabet’s Google Quantum AI division has been equally ambitious. In 2019, the team demonstrated a quantum system that performed calculations in 200 seconds—calculations that would theoretically require 10,000 years using traditional supercomputer methods. The division later achieved another breakthrough in 2023 with the development of the first logical qubit prototype.

Why Buffett Really Bought These Stocks: The Real Investment Thesis

Here’s the critical insight: Buffett and his investment managers didn’t acquire these quantum computing stocks based on quantum computing alone. The reality is far more practical and rooted in Buffett’s traditional investment philosophy.

Amazon’s primary attraction stems from its dominance in e-commerce and cloud computing. Six years after Berkshire’s initial investment, Amazon remains the undisputed leader in both sectors. These are businesses Buffett can understand—they generate reliable revenues and have clear competitive moats.

For Alphabet, the story centers on advertising. Google Search, YouTube, Google Network properties, and other advertising channels produce roughly 72% of Alphabet’s total revenue. Buffett has demonstrated expertise in understanding advertising businesses throughout his investment career, which suggests this was likely a key factor in Berkshire’s decision-making.

The Growth Catalysts Extending Far Beyond Quantum Technology

While quantum computing represents a future opportunity for both companies, they offer multiple growth drivers that likely appeal much more directly to Buffett.

Artificial intelligence (AI) is emerging as a powerful growth engine for both AWS and Google Cloud. As adoption of agentic AI accelerates, these cloud platforms are positioned to capture substantial economic value. Amazon is also preparing to launch a satellite internet service—another significant expansion opportunity. Alphabet has identified Google Cloud as a critical growth driver, while its “other bets” division includes Waymo, the self-driving technology leader, and GFiber, a high-speed internet provider.

The robotaxi market presents another compelling opportunity for both companies, though this sector remains in earlier stages of development.

Evaluating These Quantum Computer Stocks for Your Own Portfolio

Should you invest in Amazon or Alphabet simply because Buffett does? No. However, these companies deserve serious consideration for diversified investors seeking exposure to long-term growth trends.

The combined effect of cloud computing expansion, AI adoption, and emerging technologies like quantum computing positions both companies for continued growth. While Buffett may not fully grasp the intricacies of quantum mechanics, the underlying businesses—cloud services, advertising, and infrastructure—operate according to principles any investor can understand.

The broader lesson: Sometimes the best technology stock investments aren’t about understanding the most advanced technology. They’re about identifying established companies with dominant market positions that are simultaneously exploring next-generation frontiers. Alphabet and Amazon fit that profile exceptionally well, which explains why roughly $7.7 billion of Berkshire’s portfolio is committed to these quantum computing-adjacent stocks and the much larger businesses supporting them.