Billionaire Bill Ackman’s Pershing Square hedge fund invests roughly 10% of its capital in Meta Platforms, viewing it as a bargain due to AI growth potential, despite concerns over increased AI-related spending. The shift from stable consumer discretionary stocks to high-growth AI stocks signals a change in mindset.

Ackman believes Meta’s share price undervalues its AI potential, dominating digital advertising with AI initiatives for user engagement and personalized ads. Ackman sees growth opportunities with Meta’s AI smart glasses, unlocking new engagement modes. Meta’s $135 billion capex guidance for AI development doesn’t worry Ackman, who sees long-term upside potential.

Pershing Square’s investment in Meta Platforms has already seen a 11% jump in 2025, with analysts bullish on the stock. Ackman’s confidence in Meta’s long-term earnings growth from AI investments reflects in his position. Should investors follow Ackman’s lead and buy Meta stock for potential long-term gains from AI investments?

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Read more at Nasdaq: Billionaire Bill Ackman Just Loaded Up on This Powerhouse AI Stock. Should You?