Billionaire Investor Bill Ackman Has Nearly 40% of His Hedge Fund Invested in Just 3 Artificial Intelligence (AI) Stocks
2. Amazon -- 14%
Pershing scooped up Amazon(NASDAQ: AMZN) last year and made it clear they believed they were buying the stock at a compelling valuation. Amazon continues to trade at a historically low valuation compared to recent years.
In a recent presentation to investors, Pershing said it believes Amazon operates "two of the world's great, category-defining franchises." The company is, of course, referring to the retail e-commerce business that annually delivers $700 billion in gross merchandise value, and Amazon Web Services, which it believes is the leading cloud hyperscaler in a highly concentrated market.
While some investors have cast doubt on Amazon's plan to spend $200 billion on capital expenditures in 2026, largely on data centers and other AI-related infrastructure, Pershing believes the company has been constrained by capacity. Pershing also sees a significant opportunity to double profitability in the retail business.
The company has faced challenges, whether due to high tariffs or from concerns about its AI strategy, so Amazon will have a big opportunity to prove itself over the coming few years.
3. Meta Platforms -- 11%
In Q4 2025, Pershing took a new stake in Meta Platforms(NASDAQ: META), amounting to $1.8 billion at the end of 2025. Pershing, in its annual presentation, said Meta "represents a deeply discounted valuation for one of the world's greatest businesses."
The common pitch for Meta is that while other hyperscalers claim that all of their investments in AI will pay off, the payoff is more evident in Meta's digital advertising model. Meta is using AI to help with ad content and campaign creation, and to serve users with ads that are more relevant to them, thereby increasing engagement and making Meta more desirable to advertisers. Meta experienced 22% revenue growth in 2025.
Meta plans to spend between $115 billion and $135 billion on AI-related capital expenditures (capex) in 2026. Pershing views the company as well positioned to accelerate its earnings trajectory following this planned spending. The fund also sees the risk of excess investment in this infrastructure somewhat offset by the core ad business's ability to expand and absorb excess capacity.
Trading at 21 times forward earnings is not that demanding of a valuation as far as the world of AI goes. But like all of these hyperscalers committing to so much capex, investors will want to see proof that the returns will be compelling.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,970!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,174,241!*
Now, it’s worth noting Stock Advisor’s total average return is 889% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of February 24, 2026.
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Meta Platforms. The Motley Fool has a disclosure policy.
Billionaire Investor Bill Ackman Has Nearly 40% of His Hedge Fund Invested in Just 3 Artificial Intelligence (AI) Stocks was originally published by The Motley Fool
Content Original Link:
" target="_blank">
