From Nasdaq:

2023 was marked by the rapid rise of generative artificial intelligence (AI) and the success of the so-called “Magnificent Seven” group of stocks. The group included Nvidia, Meta Platforms, Tesla, Amazon, Alphabet, Microsoft, and Apple. This surge in stocks was fueled by the potential to benefit from advancements in generative AI. Tech investors are rallying to snatch up stocks positioned to profit from AI.

Three stocks that hedge fund billionaires were piling into as 2023 drew to a close are Microsoft, Alphabet, and Meta Platforms. Ken Griffin is known for returning $7 billion in profits to hedge fund investors after generating returns of roughly 15% in 2023. Based on regulatory filings available for the third quarter, Citadel had a stake of 5 million shares of Microsoft stock, representing 1.7% of the fund, worth roughly $1.87 billion.

Billionaire Bill Ackman’s hedge fund was invested in Alphabet. The fund owns 9.38 million Class C shares and 4.35 million Class A shares of Alphabet, making the total value of the stake $1.92 billion. Ackman emphasized the opportunity of buying Google at an attractive price due to AI fears and underscored the company’s competitive AI technology.

Billionaire Chase Coleman’s hedge fund heavily invested in Meta Platforms, making it the largest holding, totaling 8.9 million shares, or roughly 20% of the portfolio. Coleman expressed his interest in the potential of AI, noting that “tech is interesting again,” with the advent of AI being “pretty interesting new technology.” His advice for investing in AI is to consider how well companies use it.

The potential to benefit from AI technology is a driving factor behind the success of these stocks. Hedge fund billionaires have identified these stocks as having significant AI potential and have made substantial investments in companies like Microsoft, Alphabet, and Meta Platforms as a result. Their foresight has allowed them to take advantage of increased demand for AI services, leading to impressive stock performance.

Investors interested in AI technology and the potential gains from AI advancements may want to consider the stocks identified by hedge fund billionaires as having significant AI potential. As the tech industry continues to capitalize on AI technology, investors stand to benefit from early investments in well-positioned stocks. As AI continues to grow and develop, these companies are likely to see tremendous growth and success.



Read more: 3 “Magnificent Seven” Stocks Billionaires Are Piling Into as We Head Into 2024