Billionaire Investors Flock to Top 3 AI Stocks

Published Date : 20/06/2025 

The world's wealthiest investors are making big moves in the AI sector, with Alphabet, Amazon, and Meta Platforms leading the charge. Here's why these stocks are attracting so much attention. 

If you follow the world's wealthiest investors, you'll see a wide range of investing styles. Some focus on valuation. Others prioritize growth potential. A few look for arbitrage opportunities.

But there's at least one common denominator among many ultrarich investors these days: They like artificial intelligence (AI) stocks. Billionaires are buying these three AI stocks hand over fist.

1. Alphabet

Google parent Alphabet stands out as a top pick for several billionaire investors. Izzy Englander might be the most bullish about the tech stock. His Millennium Management hedge fund upped its position in Alphabet by 150.8% in the first quarter of 2025.

Ken Griffin is another billionaire hedge fund manager who's enthusiastic about Alphabet stock. His Citadel Advisors increased its stake in the tech giant by 55.7% in Q1. Appaloosa's David Tepper also bought over 128,000 additional shares of Alphabet, bumping up his holding in the stock by 6.8%.

What do these billionaire investors like about Alphabet? Its valuation is probably near the top of the list. The stock trades at a forward price-to-earnings ratio below 19. None of the other so-called 

Frequently Asked Questions (FAQS): 

Q: What makes Alphabet a top AI stock for billionaire investors?

A: Alphabet is favored for its attractive valuation, strong AI capabilities, and leadership in cloud services. The stock trades at a forward price-to-earnings ratio below 19, making it one of the most undervalued tech giants. Additionally, Alphabet's Google Gemini 2.5 Pro ranks No. 1 on the LMArena leaderboard, and Google Cloud is the fastest-growing among the top three cloud service providers.

Q: Why did George Soros increase his stake in Amazon?

A: George Soros likely increased his stake in Amazon due to the company's significant bottom-line improvement. In Q1, Amazon's earnings soared 64% year over year to $17.1 billion. The company has been focused on improving profitability, and its efforts are clearly paying off. Additionally, Amazon's leadership in cloud services and AI initiatives, such as Amazon Bedrock and Alexa+, are attractive factors.

Q: What is Steve Cohen's perspective on Meta Platforms?

A: Steve Cohen increased his stake in Meta Platforms by 585%, making it the fifth largest holding in his portfolio. Cohen is likely drawn to Meta's strength in the advertising market, with 3.43 billion daily active users and a 10% year-over-year increase in ad prices. Additionally, Meta's AI initiatives, including its nearly 1 billion monthly active users and leadership in AI-powered smart glasses, are appealing to Cohen.

Q: How is Alphabet performing in the AI sector?

A: Alphabet is performing exceptionally well in the AI sector. Its Google Gemini 2.5 Pro ranks No. 1 on the LMArena leaderboard, and Google Cloud is the fastest-growing among the top three cloud service providers. These achievements, combined with its strong financials and undervalued stock, make Alphabet a top choice for AI investors.

Q: What is Amazon's approach to AI and cloud services?

A: Amazon has a robust approach to AI and cloud services. Its Amazon Web Services (AWS) unit commands the largest market share in cloud services, supported by the Amazon Bedrock platform, which supports multiple AI models. Amazon also recently introduced Alexa+, its next-generation AI assistant, further solidifying its position in the AI market. 

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