Artificial intelligence (AI) is one of the hottest investment themes in the world right now, thanks to this technology’s potential to revolutionize the way business is done – and your daily life. Investors large and small have been buying AI stocks like hotcakes over the past year, and top players in AI technology have S&P500 Since then, it has continued to rise to records.
If you haven’t yet delved into AI stocks or are looking to expand your current AI holdings, you may be wondering which companies to pick right now. It’s often a good idea to look to billionaire investors for inspiration, as they have a solid track record of success when it comes to choosing high-quality, long-term investments.
This doesn’t mean you have to monitor their every move; for example, your comfort with risk or your investment horizon may differ from theirs. And billionaire investors disagree on every purchase and sale.
But in recent times, certain billionaires have gone toe-to-toe with three top AI players and capitalized on them in the second quarter. Ray Dalio of Bridgewater Associates, Ken Griffin of Citadel, and Paul Tudor Jones of Tudor Investment all bought these three stocks first. Are they good purchases for you? Let’s find out.
Nvidia (NASDAQ: NVDA) has become almost synonymous with AI lately. The company is the world’s No. 1 AI chipmaker, and this dominance and broad offering of AI products and services have driven triple-digit earnings quarter after quarter. And this has helped the stock price rise by more than 200% in the past year.
Billionaires are clearly convinced that Nvidia’s gains are far from over. Bridgewater’s Dalio increased its position 831% to 6,556,193 shares in the second quarter; Citadel’s Griffin increased his position by 107% to 2,421,072 shares; and Tudor Investment’s Tudor Jones increased its holdings by 853% to 273,294 shares.
Given Nvidia’s current market position, the company’s focus on innovation (it has pledged to update its chips annually), and its overall forecast for a $1 trillion AI market by 2030, the company could have many new waves of growth ahead to have. . And even more growth could be in store, as Nvidia is set to launch its new Blackwell architecture by the end of the year.
All of this makes this top AI company a great buy for these billionaires – and it could be a solid addition to your portfolio in the long run, too.
When you think of e-commerce, you may first think of e-commerce Amazon (NASDAQ: AMZN)but the company is also actually a leader in the AI market. Amazon uses AI to increase the efficiency of its e-commerce operations, and it also sells AI through its Amazon Web Services (AWS) unit.
AWS has gone all-in on AI, offering its customers products and services to meet every AI need, helping AWS reach annual revenues of more than $105 billion. The cloud computing sector is Amazon’s profit engine, so this achievement is excellent news for the company.
Certain billionaires are optimistic about Amazon’s future, as we can see from their investments in the second quarter. Dalio increased his Amazon holdings by 153% to 2,645,567 shares; Griffin increased his stake in Amazon by 17% to 7,692,857 shares; and Tudor Jones increased its holdings by 28% to 336,407 shares.
Amazon is the ideal investment for investors who want to delve into the AI theme, but want to minimize their risk. This is because Amazon does not rely on AI for growth; The company’s e-commerce and cloud computing businesses generated billions of dollars in revenue before the AI boom, building a solid track record. And the company’s focus on AI offers additional growth opportunities today.
Super microcomputer (NASDAQ: SMCI) is a winner behind the scenes in the AI world. The company makes servers, workstations and other products that power AI data centers. Supermicro works closely with top chip designers like Nvidia so it can immediately integrate their innovations into its equipment – and this rapid market launch appeals to AI customers.
The company has generated triple-digit revenue growth in recent quarters, and in the future it could see a new wave of growth thanks to its specialization in direct liquid cooling technology – something that should solve the major problem of heat build-up in AI data. centers.
Dalio opened a new position in Supermicro and bought 15,777 shares in the second quarter; Tudor Jones did the same and bought 26,165 shares; and Griffin increased his holdings by 96% to 201,733 shares.
Is Supermicro also suitable for you? This depends on your comfort with risk. Supermicro recently faced headwinds, with a brief report citing problems at the company in August, and a few weeks later The Wall Street Journal reported a possible Justice Department investigation into Supermicro. Investors may be looking for further clarification, and this could weigh on the stock in the near term. So, you should only consider this AI stock today if you are an aggressive investor.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino has positions in Amazon. The Motley Fool has and recommends positions in Amazon and Nvidia. The Motley Fool has a disclosure policy.
Billionaires Are Buying These 3 Top Artificial Intelligence (AI) Stocks Hand Over Fist was originally published by The Motley Fool
