Several prominent hedge fund managers have recently sold off significant portions of their holdings in Nvidia, the leading graphics processing unit (GPU) manufacturer. Among those reducing their stake in Nvidia are Stanley Druckenmiller, Israel Englander, Chris Rokos, and Philippe Laffont. While the move may be attributed to Nvidia’s remarkable stock performance in recent years, it is worth noting the stocks these hedge fund managers are now investing in, particularly in the field of artificial intelligence (AI).
One of the AI stocks that has caught the attention of billionaire fund managers is Microsoft. The tech giant made a significant investment of $10 billion in generative AI leader OpenAI, solidifying its position in the AI space. Notable investors, including Ole Andreas Halvorsen, Steven Cohen, and Chris Rokos, have increased their holdings in Microsoft during the first quarter. Microsoft’s Azure AI, which offers cloud solutions for AI developers, has experienced substantial growth, with a 60% increase in customers year over year. The company’s investment in data center capacity is expected to drive further revenue growth in the second half of fiscal 2025. With its leadership in enterprise software solutions and AI development, Microsoft is poised for continued growth.
Another AI-focused stock that has attracted billionaire investors is Meta Platforms, formerly known as Facebook. Meta has been at the forefront of AI development, utilizing machine learning algorithms to power content feeds on its platforms. The company’s CEO, Mark Zuckerberg, envisions Meta becoming the leading AI company globally. Investors such as Chris Rokos, Ray Dalio, and Stanley Druckenmiller have recently increased their positions in Meta Platforms. Meta’s integration of AI into its advertising services and its hardware business, including Oculus VR headsets and Ray-Ban sunglasses, has contributed to its growth. With increased engagement and improved algorithms, Meta is expected to see strong revenue and profit growth.