This article presents an overview of Billionaire Ken Fisher Loves These 5 AI Stocks. For a detailed overview of such stocks read our article, Billionaire Ken Fisher Loves These 10 AI Stocks.
5. Alphabet Inc (NASDAQ:GOOG)
Ken Fisher’s Q1’2024 Stake: $6,991,843,449
Alphabet Inc Class C (NASDAQ:GOOG) is among the leaders in the AI race, with the company well-positioned to benefit from the AI revolution happening in Cloud, Search, Video and Ads. Alphabet Inc Class C (NASDAQ:GOOG) is going ballistic with its AI plans as it feels increasing competition from OpenAI and other generative AI-powered search products. Wall Street analysts praised Alphabet Inc Class C’s (NASDAQ:GOOG) Q1 results which showed Alphabet Inc Class C’s (NASDAQ:GOOG) strengths and caused its market cap to cross $2 trillion. Jefferies increased its price target for Alphabet to $200, saying Search and YouTube ads accelerated for the fifth consecutive quarter.
Palm Valley Capital Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its first quarter 2024 investor letter:
“Governments have various irons in the fire for curbing (commandeering?) the power of tech titans, with the European Union rolling out the Digital Markets Act, the Federal Trade Commission suing Amazon for illegally using monopoly power, and the DOJ lawsuit against Alphabet Inc. (NASDAQ:GOOG)’s advertising business going to trial in September.
Furthermore, the dominant technology enterprises are not immune from shooting themselves in the foot. Google’s botched launch of its AI model, Gemini, shows the risk of having too much money. You lose discipline. A Pirate Wires exposé into the firm’s culture revealed that employees went to extreme lengths to intentionally degrade the quality of the AI engine’s output for ideological reasons. Try that as a small business! See how far you make it…” (Click here to read the full text)
4. Amazon.com Inc (NASDAQ:AMZN)
Ken Fisher’s Q1’2024 Stake: $7,678,116,830
Amazon.com Inc’s (NASDAQ:AMZN) latest quarterly results show thatAmazon.com Inc’s (NASDAQ:AMZN) AWS is playing a key role in the AI ecosystem as companies use the Cloud service to develop and deploy their AI apps. After Amazon.com Inc’s (NASDAQ:AMZN) latest results, Citi analyst Ronald Josey said that AWS demand is rising and generative AI is becoming a “multi-billion” annual recurring revenue stream for Amazon.com Inc (NASDAQ:AMZN).
Vulcan Value Partners stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its first quarter 2024 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) is a dominant, world class company with powerful secular tailwinds in place including its ecommerce penetration, digital advertising growth, and the cloud transition. Amazon reported strong results during the quarter. Losses in the Core Retail business significantly narrowed. Amazon reduced its cost to serve on a per unit basis for the first time since 2018 as the company’s recent regionalization efforts continue to bear fruit.”
3. NVIDIA Corp (NASDAQ:NVDA)
Ken Fisher’s Q1’2024 Stake: $8,252,596,105
Ken Fisher has been holding massive stakes in NVIDIA Corp (NASDAQ:NVDA) since 2017. He must have thoroughly enjoyed the huge bull run the stock saw on the back of AI revolution. Goldman Sachs recently increased its price target on NVIDIA Corp (NASDAQ:NVDA) to $1,100 from $1,000. Goldman Sachs also increased its earnings estimate for NVIDIA Corp (NASDAQ:NVDA) for 2025 to 2027 on average by 8%.
Patient Capital Opportunity Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its first quarter 2024 investor letter:
“This quarter we entered two new positions, while exiting four positions. Our first new position was NVIDIA Corporation (NASDAQ:NVDA), which we bought early in the quarter. Nvidia is the market leader in designing and selling Graphics Processing Units (GPU), which has recently benefited from the insatiable demand of artificial intelligence (AI) models. The company currently captures 92% market share of data center GPUs and grew revenue, earnings and FCF an astounding 126%, 392%, and 610%, respectively, over the last year. While much of the focus is on Nvidia’s market cap reaching $2.3T, up 230% over the last year, the company’s valuation has actually come down over that period. As of 3/31/23, consensus was valuing the company at 61x forward EPS. This compares to today, where the company is being valued at 37x. While yes, we have never seen a company expand their market cap by so much so quickly, we have also never seen a company grow their fundamental earnings and cash generation so quickly (and which is actually expanding faster than valuation). While competitors are working to enter the GPU space, Nvidia has created a moat around their GPUs with their CUDA software offering. While we do expect the large cloud players to continue to move into the market, we think NVDA can continue to demand top market share. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of accelerated computing and artificial intelligence (AI).
Nvidia Corp. (NVDA) was a top performer in the quarter gaining 82.5% in the period. While the company has had an impressive run, gaining 242% over the last year, the valuation has been supported by the impressive growth in Revenue (126%), EPS (392%) and free cash flow (610%) over the last year. The company has solidified its position in the GPU space supported by its proprietary software CUDA. While we expect competition to increase, we think NVDA can continue to maintain top market share. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of artificial intelligence (AI).”
2. Apple Inc (NASDAQ:AAPL)
Ken Fisher’s Q1’2024 Stake: $9,582,956,861
All eyes are on Apple Inc (NASDAQ:AAPL) as everyone awaits its much-anticipated AI plan expected to be revealed at the Worldwide Developers Conference on June 10. Recently, Bloomberg reported that Apple Inc (NASDAQ:AAPL) plans to put its own high-end chips in data centers to deliver AI features this year.
As of the end of 2023, Ken Fisher owns a $9.6 billion stake in Apple Inc (NASDAQ:AAPL).
The London Company Large Cap Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its first quarter 2024 investor letter:
“Reduced: Apple Inc. (NASDAQ:AAPL) – Reduction reflects strong performance in 2023 and resulting elevated valuation. We believe the outlook for AAPL remains strong with slow growth in iPhone (now #1 global market share) and faster growth in the higher margin services business. R&D will continue to drive new products and AAPL now has over 2 billion installed devices around the world. While near term earnings expectations appear reasonable, we felt it was prudent to reduce the position size based on risks to valuation.”
1. Microsoft Corp (NASDAQ:MSFT)
Ken Fisher’s Q1’2024 Stake: $10,908,153,229
Microsoft Corp (NASDAQ:MSFT) is the leader in the AI race, having spearheaded the generative AI revolution with its OpenAI investments. Wedbush Securities analyst Dan Ives recently called Microsoft Corp’s (NASDAQ:MSFT) latest quarterly numbers a “drop the mic moment” for Microsoft Corp (NASDAQ:MSFT), praising Microsoft Corp’s (NASDAQ:MSFT) growth in Azure and Copilot.
Microsoft Corp (NASDAQ:MSFT) is the most popular stock among the 933 hedge funds tracked by Insider Monkey.
Vulcan Value Partners stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its first quarter 2024 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) is the world’s largest software company with a broad range of offerings including Microsoft office, gaming, Azure cloud computing, LinkedIn, and more. It was a material contributor for the second consecutive quarter, and we discussed it at length in last quarter’s letter. The company continues to execute well.”
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