Warren Buffett’s Berkshire Hathaways just bought Google stock. Should you?

Warren Buffett’s Berkshire Hathaway is making a big bet on one of the hottest technology stocks.

Berkshire (BRK.A) (BRK.B) bought 17.8 million shares of Alphabet’s Class A stock (GOOGL) in the third quarter, according to a regulatory filing published Friday evening. A stake of that size in Google’s parent company is worth nearly $5 billion as of Monday’s close.

Alphabet shares jumped on Monday, as is often the case when Berkshire makes a multibillion-dollar investment. Alphabet shares rose by more than 3%, while the majority of major technology companies’ stocks fell.

Berkshire’s rare technology bet

Alphabet is an unusual buy for Berkshire, which tends to buy out-of-favor stocks with the goal of holding them for the long term.

The alphabet, meanwhile, is far from unpopular. It’s a member of the Magnificent Seven, the high-flying technology stocks whose valuations have spooked investors recently. Alphabet stock has risen 50% since the beginning of the year. All of these gains came after mid-July, when the stock finally recovered from a broad market downturn fueled by concerns about tariffs.

Alphabet isn’t the only Mag 7 stock in Berkshire’s portfolio. Apple (AAPL) is the largest company holding shares in the group, worth about $65 billion. But it first bought Apple shares in 2016 and has been reducing that position over the past two years. Berkshire sold about 15% of its stake in the iPhone maker last quarter.

What does Wall Street think about the alphabet?

Analysts are generally optimistic about Alphabet shares.

JPMorgan analysts raised their price target by 13% after the company reported better-than-expected third-quarter results late last month. Analysts described the report as “strong across the board” and noted that Alphabet is showing “signs that research into artificial intelligence represents more of an opportunity than a threat,” contrary to Wall Street expectations. Analysts at Wedbush also raised their price targets, saying the quarter “validates Alphabet’s position as a major beneficiary of AI.”

Alphabet also raised its full-year capital expenditure guidance last month. It expects to invest more than $90 billion in capital equipment this year, with a large portion of that going toward building data centers and filling them with chips to train and run artificial intelligence models. Investors have recently become concerned about AI spending in the technology space, with some wondering when, if ever, they will see a return on their investment.

Regardless, 11 out of 14 analysts have current ratings tracking Visible Alpha stock as “buy,” with the rest recommending the stock hold. The average price target of $324 is about 14% above the stock’s closing price on Monday.