Warren Buffett is set to step down as CEO of Berkshire Hathaway at the end of 2025, concluding a remarkable tenure that began in 1965.

In light of perceived market overvaluation and geopolitical risks, Berkshire Hathaway has been reducing its stock holdings while increasing cash reserves.

Berkshire's stock portfolio, valued at $282 billion, has seen a shift towards technology investments, particularly in artificial intelligence (AI), with 22% allocated to Apple and Amazon.

Despite selling over 600 million shares last year, Apple remains Berkshire's largest investment, comprising 21.6% of its portfolio, although concerns about the company's performance in the AI sector persist.

Buffett continues to support Apple, even as Berkshire's investment strategy evolves in response to market conditions.

Looking ahead, Berkshire's investment decisions regarding Amazon may shift after Buffett's departure, as he was not directly involved in the decision to invest in the company.

Amazon Web Services (AWS) leads the cloud services market with a 30% share and is crucial to Amazon's generative AI advancements, which are anticipated to drive significant revenue growth.

AWS offers a diverse range of generative AI tools and services, catering to both large clients and small businesses with customizable and ready-made solutions.

Amazon's sales increased by 17% year-over-year in the first quarter of 2025, with AWS contributing 63% of the company's operating income.

CEO Andy Jassy has expressed optimism that the integration of generative AI across applications could vastly expand AWS's revenue potential, possibly exceeding previous estimates.

Amazon has partnered with Alibaba to deploy its AI software in China, although it faces challenges from domestic tech brands amid geopolitical tensions.