In this article, we discuss the 5 AI stocks billionaires are crazy about. To read the detailed analysis of the AI industry, go directly to the 10 AI Stocks Billionaires Are Crazy About.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Billionaire Investors: 29
Dollar Value of Billionaire Holdings: $15.395 billion
NVIDIA Corporation (NASDAQ:NVDA) produces graphics processing units, central processing units, and system-on-a-chip units, and some of its chips and solutions are focused on artificial intelligence like its NVIDIA AI and HGX H200.
On December 8, it was announced that NVIDIA Corporation (NASDAQ:NVDA) and YTL Power International (OTCPK:YTLPF) will construct an artificial intelligence (AI) data center in Malaysia through an investment of over $4 billion.
The hedge fund sentiment was positive toward NVIDIA Corporation (NASDAQ:NVDA)’s stock, according to Insider Monkey’s database. 180 hedge funds had investments in the stock in the third quarter, up from 175 in the previous quarter. Billionaire Rajiv Jain’s GQG Partners was the most prominent investor in the company, with nearly 14.04 million shares worth $6.1 billion.
NVIDIA Corporation (NASDAQ:NVDA) was mentioned in White Brook Capital Partners’ third-quarter 2023 investor letter. Here is what it said:
“The magnificent seven, that underpin the S&P 500 performance, which includes NVIDIA Corporation (NASDAQ:NVDA), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”
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4. Meta Platforms, Inc. (NASDAQ:META)
Number of Billionaire Investors: 32
Dollar Value of Billionaire Holdings: $14.744 billion
Meta Platforms, Inc. (NASDAQ:META) is a California-based conglomerate that develops applications and technologies focused on advertising, generative AI, business insight solutions, and social networking.
Meta Platforms, Inc. (NASDAQ:META) was covered by 38 Wall Street analysts over the last three months, and 37 maintained a Buy rating on the stock. The average price target of $387.71 represents an upside of 16.52% at the time of writing on December 8.
Meta Platforms, Inc. (NASDAQ:META) is a top choice of billionaires among AI stocks, as 32 billionaires were bullish on the stock in the third quarter at a combined dollar value of $14.744 billion.
Artisan Partners commented on Meta Platforms, Inc. (NASDAQ:META) in its third quarter 2023 investor letter. Here is what it said:
“Meta Platforms, Inc. (NASDAQ:META) added to its string of gains in Q3. The share price is up about 150% this year. Second quarter results were very good: revenue growth is back to double digits, user metrics are solid and show very good engagement, daily active users grew 7%, and importantly, Facebook app users continue to grow across all geographies. Instagram is growing more strongly, but solid growth in the legacy Facebook business is a positive indicator. Importantly, the company has controlled expenses tightly. Headcount was down 14% year over year. Adjusted EBIT grew 44%, and the margin recovered strongly to 38%, from 29% last year.”
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3. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Billionaire Investors: 33
Dollar Value of Billionaire Holdings: $17.351 billion
Amazon.com, Inc. (NASDAQ:AMZN) is a tech giant that provides services and products focused on e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence.
On November 28, at its AWS re:Invent annual cloud conference event, Amazon.com, Inc. (NASDAQ:AMZN) announced a partnership between Amgen Inc. (NASDAQ:AMGN) and Amazon Web Services (AWS) to use generative artificial intelligence to discover and develop medicines.
On November 28, Amazon.com, Inc. (NASDAQ:AMZN) introduced its new generative artificial intelligence chatbot, called Q. The chatbot has been designed to help in customer service and will be available for $20-$25 to the users.
Polen Capital commented on Amazon.com, Inc. (NASDAQ:AMZN) in its third quarter 2023 investor letter. Here is what it said:
“Amazon continues to showcase it’s place as one of the most competitively advantaged companies in the world. The company has made significant progress in managing costs and better leveraging existing capacity, driving a strong recovery in its profitability. We think there’s additional room for improvement.
AWS growth seems to be stabilizing even while management continues to work with clients to optimize their infrastructure spend. Roughly 90% of global IT spending remains on premise. We believe this will eventually flip, with most IT spending ultimately moving to the cloud over time. We think AWS will be a significant beneficiary of this transition.
Further, our investment case on company profitability driven by AWS and advertising continues to unfold, delivering nearly $8 billion in free cash flow over the trailing twelve months and a net margin of 5%. We expect both to move higher with the mix shift of more profitable businesses growing fastest continuing to take effect.
At Amazon’s current price, we believe the company is well positioned to deliver a mid-teens or higher total shareholder return for our clients over the next five plus years without a Herculean effort from the business. It simply needs to continue executing on current businesses and growing into the capacity it built during and immediately after the pandemic.”
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2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Billionaire Investors: 34
Dollar Value of Billionaire Holdings: $13.446 billion
Alphabet Inc. (NASDAQ:GOOGL) is one of the largest tech holding companies and provides products, platforms, online advertising services, AI tools, and other services.
On December 6, Alphabet Inc. (NASDAQ:GOOGL) announced a multi-year partnership with McDonald’s Corporation (NYSE:MCD) for the deployment of its Google Cloud technology across McDonald’s Corporation (NYSE:MCD)’s restaurants globally.
On November 28, Alphabet Inc. (NASDAQ:GOOGL) announced another partnership to further its generative artificial intelligence capabilities. Under the partnership, Google Cloud gen AI platform Vertex AI will enhance Symphony Communications’ product, Cloud9.
ClariVest Asset Management, LLC commented on Alphabet Inc. (NASDAQ:GOOGL) in its third quarter 2023 investor letter. Here is what it said:
“Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, provides online advertising services worldwide. The company launched its chatbot in Europe and Brazil and said that the artificial intelligence tool can now be interacted with in more than 40 languages and includes new features such as the ability to use images in chat.”
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1. Microsoft Corporation (NASDAQ:MSFT)
Number of Billionaire Investors: 34
Dollar Value of Billionaire Holdings: $40.258 billion
Microsoft Corporation (NASDAQ:MSFT) is one of the biggest tech companies in the world and manufactures and sells personal computer software systems, artificial intelligence tools, and applications.
On November 28, Microsoft Corporation (NASDAQ:MSFT) announced a quarterly dividend of $0.75, payable by March 14 to the shareholders of record on February 15. At the time of writing on December 8, the stock’s dividend yield was 0.80%.
Over the last three months, 36 Wall Street analysts covered Microsoft Corporation (NASDAQ:MSFT), and 35 kept a Buy rating on the stock. The average price target of $415.75 had an upside of 11.09% at the time of writing.
White Brook Capital Partners mentioned Microsoft Corporation (NASDAQ:MSFT) in its third quarter 2023 investor letter. Here is what it said:
“The magnificent seven, that underpin the S&P 500 performance, which includes Microsoft Corporation (NASDAQ:MSFT), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”
Follow Microsoft Corp (NASDAQ:MSFT)
Follow Microsoft Corp (NASDAQ:MSFT)
You can also look at the 10 Most Popular Technology Stocks Among Billionaires and the 12 Dow Stocks Billionaires Like The Least.
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