In the third quarter, top hedge fund managers invested in Alphabet and Meta Platforms. Meta uses AI to enhance engagement and ad conversion rates, while Alphabet monetizes AI in digital advertising and cloud computing. Hedge fund managers like Israel Englander, Ken Griffin, and Philippe Laffont added shares of both companies, outperforming the S&P 500 in recent years. Shares of Meta and Alphabet have seen significant gains this year.

Meta Platforms dominates in digital advertising and smart glasses, owning popular social media networks. The company leverages AI to boost engagement and ad conversion rates, aiming to integrate AI into smart glasses for future growth. Wall Street expects Meta’s earnings to rise annually, with a median target price of $842 per share, implying a 27% upside from the current price.

Alphabet leads in ad tech with Google Search and YouTube, using AI to optimize web properties. The company’s AI assistant, Gemini, has over 650 million monthly users, and Google Cloud is gaining market share in AI development. Wall Street projects Alphabet’s earnings to increase annually, with a median target price of $330 per share, suggesting a 6% upside.

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Read more at Nasdaq: Billionaires Buy 2 Trillion-Dollar AI Stocks Hand Over Fist Ahead of 2026