Artificial intelligence (AI) stocks have shaken up the stock market ever since the inception of ChatGPT. It’s no shocker that billionaire hedge fund managers and other investors have reaped the benefits from this groundbreaking technology.
Several of these big shots have made a fortune by placing their bets on companies like Nvidia, which have seen remarkable surges since the early days of the AI revolution. So, what’s catching the eye of these business magnates lately? Let’s dive into some of the AI stocks that billionaires are aggressively acquiring.
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Microsoft’s Strong AI Investment
Microsoft (NASDAQ: MSFT) has emerged as a preferred choice for AI investors following the rise of ChatGPT. Microsoft’s close ties with OpenAI, the brain behind ChatGPT, solidify its position. Having injected an estimated $13 billion into OpenAI, Microsoft has seamlessly integrated OpenAI’s technology into various products like Github, the office suite, Bing, and Azure, with Azure OpenAI experiencing substantial adoption.
This surge of interest from top investors is evident. Renowned figures like Stanley Druckenmiller of Duquesne Capital Management, Steven Cohen of Point72 Asset Management, and Ray Dalio’s Bridgewater Associates have significantly increased their stakes in Microsoft, which has been delivering impressive results driven by its AI initiatives.
Alphabet’s AI Competency
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is giving Microsoft a tough fight in the AI realm, challenging its dominance post the ChatGPT era. Alphabet introduced its AI chatbot, Bard, as a response to ChatGPT, later replacing it with Gemini after initial hiccups. Moreover, Alphabet’s strategic acquisition of DeepMind a decade ago has bolstered its AI prowess.
Alphabet’s shares have witnessed a significant surge recently, attracting continued interest from hedge fund investors. The first-quarter purchases seem well-timed as the stock recently hit an all-time high.
Investors like Chris Hohn’s TCI Fund Management, Paul Tudor Jones’s Tudor Investments, and Jeremy Grantham’s Grantham, Mayo, Van Otterloo & Company have added substantial stakes in Alphabet during the first quarter, believing in its potential for growth.
Given the colossal sizes and commanding positions of Microsoft and Alphabet in the tech sector, they are poised to continue attracting investments from the crème de la crème of the investor community, solidifying their positions as top-tier AI stocks.
Consider Smart Investing Decisions
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Reflect on the success story of Nvidia back in 2005, where an investment of $1,000 at the recommendation time would have ballooned to a staggering $652,342!
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Suzanne Frey, an executive at Alphabet, serves on The Motley Fool’s board of directors. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Alphabet and Microsoft. The Motley Fool suggests the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool abides by a disclosure policy.