Billionaire investor and Berkshire Hathaway chairman and CEO Warren Buffett has significant exposure to artificial intelligence (AI) stocks.
A large portion of Berkshire Hathaway's portfolio is invested in companies that are using AI significantly. Just this week, new data revealed that 25% of his $315 billion portfolio is invested in only two AI shares: Apple and Amazon.
While Warren Buffett is interested in the emerging era for AI technology, he also warns about its darker side and is cautious about a potential surge in AI-driven fraud.
In Warren Buffett's own words: "If I was interested in investing in scamming, it's going to be the growth industry of all time."
He isn't suggesting that investors invest in AI-driven scamming. But he does point out that if the AI industry continues to boom, then surely the anti-scam, or cybersecurity, industry will need to too.
In other words, where there's a surge in AI-driven fraud, there will also be a booming market for AI technologies that enhance cybersecurity measures. For example, Grand View Research says the global AI in cybersecurity market size was estimated at US$25.35 billion in 2024. This is projected to reach US$93.75 billion by 2030, growing at a CAGR of 24.4% from 2025 to 2030.
After all, no individual, company, or even government wants confidential information leaked into the public domain. And they're willing to spend more and more to protect themselves.
And that presents a great investment opportunity.
ASX-listed cybersecurity stocks poised for growth
There are no pure-play cybersecurity stocks currently listed on the ASX 200 index; however, there are some smaller-cap Australian cybersecurity companies that could be poised for growth in the wake of the AI boom.
For example, Qoria Ltd (ASX: QOR) is a cybersecurity company that offers online safety technology for children. This includes school and parental controls. Qoria aims to become the global leader in children's digital safety and well-being within three years.
The company reaches 27 million students in 32,000 schools and earns significant annual recurring revenue (ARR) from ongoing school contracts. Its technology is particularly relevant in Australia amid the nation's looming social media ban for under-16-year-olds.
Qoria is a small-cap company with a market capitalisation of $1.02 billion. At the time of writing, its shares are trading for 77 cents a piece, up 87.8% over the year.
Another option…
Investors who want exposure to the explosive cybersecurity sector can also consider the Betashares Global Cybersecurity ETF (ASX: HACK).
The exchange-traded fund (ETF) holds shares in major international cybersecurity companies like CrowdStrike Holdings and Palo Alto Networks.
As of 30 September, the ASX ETF has returned an average of 18.93% over the past five years. That easily outperforms an ASX index fund, which has delivered a return of 12.9% per annum over the same period.
At the time of writing, HACK's share price is $15.58, which is 25.65% higher than this time last year. And if Warren Buffett is right, it can only keep climbing.
