Buffett's $7.7 Billion Quantum Computing Stock Strategy: Inside His Amazon and Alphabet Plays

Warren Buffett’s Berkshire Hathaway is sitting on approximately $7.7 billion in quantum computing stocks—but here’s what most investors miss: the legendary investor didn’t buy these positions primarily for their quantum computing divisions. This disconnect between conventional wisdom and Buffett’s actual strategy reveals a sophisticated approach to long-term value investing in an era of rapid technological change.

The two quantum computing stocks anchoring this massive position are Amazon and Alphabet (Google’s parent company). Rather than chasing specialized quantum computing firms like D-Wave Quantum, IonQ, or Rigetti Computing, Buffett has positioned Berkshire in established tech giants with significant quantum computing footprints. This choice reflects his core investment philosophy: understanding the fundamental business before deploying capital.

The $7.7 Billion Question: Why These Two Quantum Computing Stocks?

Berkshire initiated its Amazon position in 2019, though Buffett himself acknowledged “being an idiot” for not buying earlier. The 2025 acquisition of over 17.8 million Alphabet shares corrected a similar regret about Google’s parent company. Together, these holdings represent a calculated bet on technology leaders whose influence extends far beyond quantum innovation.

Amazon’s quantum computing presence manifests through Amazon Web Services (AWS). The division launched Amazon Braket, a cloud service enabling researchers to test quantum algorithms and develop quantum software. More recently, Amazon introduced the Ocelot quantum computing chip, which supports quantum error reduction by up to 90%—a critical technical achievement for advancing practical quantum applications.

Alphabet operates Google Quantum AI, a research unit that achieved a breakthrough in 2019 by developing a quantum system performing calculations in 200 seconds that would require approximately 10,000 years on conventional supercomputers. In 2023, the unit demonstrated the first logical qubit prototype, marking another significant milestone in quantum computing advancement.

The Real Driver: Core Business Dominance Over Quantum Ambition

What makes these quantum computing stocks compelling isn’t primarily their quantum laboratories—it’s their iron grip on foundational business segments. Amazon continues dominating both e-commerce and cloud computing nearly seven years after Berkshire’s initial investment. AWS remains the primary profit engine for Amazon, and its quantum computing services represent an extension of existing cloud infrastructure rather than a standalone revenue driver.

Alphabet’s fundamental strength lies in advertising revenue, which generates approximately 72% of total company revenue. Google Search, YouTube, and the Google Network advertising ecosystem create predictable, scaled cash flows that fund both quantum research and other advanced technology initiatives. Buffett—a self-described novice in quantum mechanics—understands advertising deeply, which partially explains his confidence in this investment.

Growth Catalysts Beyond Quantum Computing

The quantum computing stocks narrative shouldn’t overshadow the multiple growth vectors these companies pursue. AWS and Google Cloud represent accelerating cloud computing adoption, while artificial intelligence adoption creates immediate revenue opportunities. Amazon’s satellite internet service launch and Google’s self-driving car leader Waymo demonstrate how these technology conglomerates diversify across emerging markets.

The emergence of agentic AI—autonomous artificial intelligence systems—particularly benefits AWS and Google Cloud infrastructure, potentially driving higher adoption and pricing power. Additionally, the robotaxi market represents another substantial opportunity where both companies possess relevant capabilities and market positioning.

Quantum Computing Stocks as Part of a Broader Tech Strategy

Buffett’s $7.7 billion quantum computing stock portfolio reveals his strategy of accessing emerging technologies through established platforms rather than speculative early-stage ventures. By investing in Amazon and Alphabet, Berkshire gains quantum computing exposure without concentrating capital in unproven business models. The quantum computing divisions function as research departments adding future optionality rather than current profit centers.

This approach demonstrates why pure-play quantum computing stocks might carry higher risk profiles compared to technology giants quietly building quantum capabilities. Amazon and Alphabet invest in quantum computing from positions of market strength, capital abundance, and diverse revenue streams, providing financial cushion for technological experimentation.

For investors considering quantum computing stocks, the lesson from Buffett’s positioning is clear: understanding the core business matters as much as understanding the emerging technology. Amazon and Alphabet offer pathways to quantum computing exposure while maintaining exposure to proven, cash-generating businesses—combining innovation access with financial stability in a way that independent quantum computing companies cannot replicate.