From Nasdaq: 2025-05-31 06:30:00

Bill Ackman, a billionaire investor, follows Warren Buffett’s strategy of investing in high-quality businesses. Pershing Square, his hedge fund, has 14% of its $12 billion portfolio in a top AI stock that has surged 143% in the past five years.

Alphabet, the parent company of Google, has been a leader in AI for over a decade. The company announced new AI features at its developer conference, including Gemini Agent Mode and AI smart glasses developed with Warby Parker.

Alphabet’s strong financial position, with $35 billion in net income and $19 billion in free cash flow in the first quarter, makes it a lucrative investment. Despite shares being down 9% this year, Alphabet’s ad sales are rising, and the stock trades at an attractive price-to-earnings ratio of 19.2.

Investors are advised to consider buying Alphabet stock, as it positions itself as a dominant force in AI. With a strong economic moat and deep pockets for aggressive investment in AI, Alphabet’s financial strength makes it a compelling opportunity for investors.



Read more at Nasdaq: Billionaire Bill Ackman Has 14% of His $12 Billion Hedge Fund in 1 Top AI Stock