It’s the same old cycle…
A new trend catches fire, retail traders pile in, the talking heads start calling for the top, and suddenly, everyone’s a macro expert shouting “bubble!” from the rooftops.
But while the loudest voices keep warning of doom, some of the smartest, most successful investors on the planet are doing something very different.
They’re not shouting, they’re not predicting crashes, and they’re definitely not chasing headlines.
What are they doing instead?
They’re buying.
And we’re talking multi-billion-dollar conviction bets in some of the market’s biggest players.
Case in point: Warren Buffett just added $4 Billion of a certain mega-cap stock to his Berkshire Hathaway portfolio.
Buffett Buying GOOG? That’s Not Bubble Behavior.
Everyone knows Warren Buffett is not known for chasing hype.
This is the guy who’s built a legendary investing career avoiding high-flying tech stocks. For decades, Buffett has steered clear of Silicon Valley darlings because they didn’t fit his value investing framework.
So when Buffett quietly starts scooping up over $4 billion worth of Alphabet (NASDAQ: GOOGL), that’s not just useless noise. That’s something meaningful.
He bought a 17.8 million share position, and remember, Buffett doesn’t hit the “buy” button like we do. To accumulate a position that big, it likely took weeks (if not months) of methodical buying.
So while traders scream “bubble,” Buffett’s building a multi-billion-dollar position in one of the cornerstone companies of AI and cloud infrastructure.
But Isn’t GOOG Already Up Huge?
Yep. The chart has gone nearly parabolic in 2025.
Take a look at the YTD chart below:
GOOG YTD, Daily Candles Chart; SteadyTrade
And Buffett bought anyway.
This flies in the face of the classic value investor playbook, which tells you to buy the dip, avoid overbought stocks, and wait for the market to come to you.
But he didn’t wait. He adapted.
Because AI technology isn’t about hype but about structural change.
Google isn’t just a search engine anymore. It’s become a critical force in the AI ecosystem, powering global artificial intelligence models through its massive cloud infrastructure.
The company is investing heavily, including a staggering $40 billion allocated to data center expansion in Texas alone.
Beyond infrastructure, Google is also developing essential tools for developers and enterprises, enabling them to build, deploy, and scale AI models across industries.
When Warren Buffett buys that kind of company at all-time highs, that’s not “dumb money…”
That’s conviction.
So, Is AI Overhyped?
Sure, some corners of the market probably are.
We’ve seen junky penny stocks slap “AI” in a press release to squeeze for a day or two…
And we’ve seen VC-backed hype machines with no revenue trade at insane multiples.
But that’s not what this is about.
The AI infrastructure layer, the companies building the cloud, the chips, the LLMs, are posting real earnings, real growth, and record-breaking investment cycles.
Companies like:
- Alphabet (GOOGL)f="/quote/GOOGL/" data-stock="GOOGL">GOOGL): A top-tier infrastructure play with a forward PE still lower than most AI chip stocks.
- Amazon (AMZN): Just signed a $38 Million cloud deal with OpenAI
- Microsoft (MSFT): Also partnered with OpenAI and deeply integrated across the enterprise layer.
- Nvidia (NVDA): The literal backbone of AI computing, and still delivering numbers to match the hype.
This isn’t some Pets.com bubble. These are some of the most profitable companies in the world, spending billions to build what’s next.
What Traders Should Take From This
Listen, I’m not saying chase every AI ticker on the board.
But I am saying this:
If your entire thesis is “AI is a bubble,” while Buffett and other major investors are loading the boat on foundational players, you might want to reassess your thinking.
Here’s how I’m approaching it:
- Focus on infrastructure and leadership: The tools and platforms that other AI companies rely on.
- Track technical breakouts with conviction behind them: If Buffett’s buying parabolic charts, don’t fear strength. Respect it.
- Use high-quality, high-probability patterns: Trade the momentum with setups like the Weak Open Red to Green (WORG), VWAP holds, and dip-and-rips… but always with risk management.
- Know the difference between hype and transformation: There are a lot of speculative penny stocks making noise in the market. Know which companies are truly serious about AI.
My Final Thoughts…
Everyone loves to be the hero who calls the top. But history doesn’t remember those guys. It remembers the ones who saw the shift, tuned out the noise, and moved with intention.
Right now, the AI “bubble” narrative is getting shredded by the smartest money in the game.
You can fight it, or you can study it and position yourself accordingly.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade