Alphabet: Berkshire Goes All-In on AIAlphabet Inc. Class CBATS:GOOGActivTradesBy Ion Jauregui – Analyst at ActivTrades Alphabet is back in the spotlight for investors after Berkshire Hathaway revealed a new position of approximately $10 billion in the company. The move coincides with a reduction in Berkshire’s elevated cash position and represents a sign of confidence in Alphabet’s potential to monetize its leadership in artificial intelligence. Fundamentals continue to show solid performance. Alphabet reported approximately $119.8 billion in revenue in the second quarter, up 24% year-on-year, while operating profit increased by around 30%. Google Cloud continues to accelerate, with revenue growth of 82%, while the search business maintains double-digit growth and continues to be the group’s main source of cash generation. The main risk lies in the sharp increase in artificial intelligence spending. Alphabet expects to allocate between $195 billion and $205 billion in CapEx during 2026, mainly to data centers, servers and the infrastructure required to develop its AI models and services. The question for the market is whether these investments will generate sufficient additional growth to offset the pressure on short-term cash flow. Berkshire’s position becomes particularly relevant for precisely this reason: new capital is flowing into Alphabet while the market debates whether AI spending is a strategic investment or a risk to future profitability. Technical Analysis Alphabet closed Friday at $353.63 and is trading around $355.90 in overnight trading. The long- and medium-term trend remains bullish, although the short-term trend remains relatively range-bound. From the $408.61 high reached on May 18, the stock has experienced several corrections. The latest bullish attempt reached $384.48 on August 5, after which the price moved back toward the 50-day moving average, where it is currently finding support. The short-term range is defined by $322.38, close to the 200-day moving average, and $384.48. A breakout above the latter resistance would reinforce the bullish scenario towards the all-time highs, while a break below $322.38 would deteriorate the medium-term structure. The Point of Control (POC) is well below the current price, with a double-bell distribution: the first volume concentration appears at $168.46, with a second one around the 200-day moving average. The RSI stands at 50.75, in neutral territory, while the MACD continues to recover after the oversold conditions recorded during the second half of July. Alphabet therefore combines solid growth, strong cash-generation capacity and a privileged position in AI, although with an exceptionally high level of investment. The price reaction around $384.48 will be key in determining whether the market begins to price in another bullish phase. ******************************************************************************************* The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication. All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.