Billionaire Investors Favor AI Stocks Amid Trillion-Dollar Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy GOOGL?
Source: Fool
- Portfolio Concentration: Bill Ackman's Pershing Square Capital Management managed $14.6 billion at the end of Q3, with approximately 48% allocated to three prominent AI stocks, reflecting strong confidence in this rapidly growing sector.
- Google's Market Leadership: Ackman's holdings in Alphabet account for 19% of his portfolio, with Google Cloud experiencing a 47% sales growth rate, indicating that the company's ongoing investments in AI are driving high-margin growth.
- Amazon's Strong Performance: Ackman's investment in Amazon represents 8.7% of his assets; while Amazon is known for e-commerce, its AWS cloud service saw a 24% sales growth rate in Q4, showcasing the positive impact of AI solutions on its business.
- Uber's Market Potential: Ackman's stake in Uber constitutes 20% of his assets, with the global ride-sharing market expected to grow from $88 billion in 2025 to $918 billion by 2033, and Uber holding a 76% share of the U.S. market, highlighting its leadership and future growth potential.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOGL is 338.25 USD with a low forecast of 279.00 USD and a high forecast of 390.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
27 Buy
7 Hold
0 Sell
Strong Buy
Current: 324.320
Low
279.00
Averages
338.25
High
390.00
Current: 324.320
Low
279.00
Averages
338.25
High
390.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Nvidia's Market Milestone: Nvidia has become the first publicly traded company to reach a $5 trillion market cap, reporting $57 billion in revenue for Q4 2025, a 62% year-over-year increase, which underscores its dominant position in the AI chip market.
- Google Cloud Growth: Alphabet achieved an 18% revenue growth in Q4 2025, with its cloud computing segment soaring by 48% year-over-year, indicating that the company is leveraging AI to enhance both search engine and cloud service revenues, thereby strengthening its competitive edge.
- Micron's Successful Pivot: Micron reported a 57% revenue growth in its fiscal Q1 2026, with net income nearly tripling, and its stock has quadrupled over the past year as it shifts focus from consumer products to AI infrastructure, showcasing significant growth potential.
- Future Growth Outlook: Micron anticipates continued acceleration in growth over the coming quarters, with a focus on AI infrastructure expected to yield higher profit margins and free cash flow, positioning it to potentially outperform Nvidia in returns in the future.
See More
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- Micron's Market Demand: Micron announced in its fiscal Q1 update that its entire supply of high-bandwidth memory (HBM) for 2026 has sold out, with expectations for the HBM market to grow at a compound annual growth rate of around 40%, expanding from $35 billion in 2025 to $100 billion by 2028, indicating strong market demand and profit potential.
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See More
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- Earnings Beat Expectations: Nvidia's reported sales of $57 billion in Q3 2025 surpassed Wall Street's expectations of $54.7 billion, demonstrating that the rapid adoption of AI technology is significantly boosting corporate performance.
- Accelerated Industry Transformation: Approximately 78% of businesses globally are using AI for at least one function, with 71% expected to adopt generative AI by late 2024, indicating that AI's widespread application is reshaping operational models in traditional sectors.
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See More
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- Market Reaction: Following the traction gained by Anthropic's productivity tool Claude Cowork, software stocks faced a significant sell-off, with Smith arguing that the market's reaction was exaggerated, as enterprises still require specific data models and workflows from traditional software, indicating that AI tools will not entirely replace existing software solutions.
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See More
