Over the last three years, no trend has captured the attention of Wall Street and the capital of investors quite like the artificial intelligence (AI) revolution.
Empowering software and systems with the tools to make split-second decisions and become more efficient at their assigned tasks over time represents a major leap forward for most industries around the world. According to PwC's "Sizing the Prize" report, AI can increase global gross domestic product by $15.7 trillion come 2030.
In particular, AI stocks have served as a magnet for billionaire money managers. We know this thanks to quarterly filed Form 13Fs.
Image source: Getty Images.
Institutional investors with at least $100 million in assets under management are required to file a 13F with the Securities and Exchange Commission no later than 45 calendar days following the end of a quarter. A 13F provides investors with a snapshot of the stocks Wall Street's brightest money managers have been buying and selling.
Based on the latest round of 13Fs, which detail trading activity for the September-ended quarter, billionaires can't stop buying three premier AI stocks ahead of 2026.
Alphabet
The first artificial intelligence stock that's been a somewhat regular addition to the portfolios of billionaire fund managers ahead of the new year is Google parent Alphabet (GOOGL 1.66%)(GOOG 1.69%).
During the third quarter, Berkshire Hathaway's billionaire CEO Warren Buffett oversaw the purchase of 17,846,142 Class A shares (GOOGL). Meanwhile, Coatue Management's Philippe Laffont opened a 2,091,574-share stake in the Class C shares (GOOG) and added 5,210,434 shares to his fund's existing stake in the Class A shares.
NASDAQ: GOOGL
Key Data Points
The allure of owning Alphabet stock lies in its sustainable moat in internet search. Dating back 10 years, Google has accounted for 89% to 93% of global internet search market share, according to data from GlobalStats. Alphabet is also the parent company of YouTube, which is the second most-visited social site in the world, behind only Google. This affords the company phenomenal ad-pricing power in most economic climates.
But beyond its advertising moat lies a long runway of opportunity linked to the AI revolution. Alphabet's cloud infrastructure service platform, Google Cloud, is incorporating various generative AI and large language model solutions for its clients. These tools appear to be accelerating growth for a segment that was already delivering year-over-year revenue growth of around 30%. Since cloud margins are considerably juicier than those associated with advertising, Google Cloud could become Alphabet's primary cash cow in the years to come.
Warren Buffett and Laffont likely also appreciate Alphabet's treasure chest. It closed out the September quarter with $98.5 billion in combined cash, cash equivalents, and marketable securities, and brought in more than $112 billion in cash from its operating activities through the first nine months of 2025. In other words, it has the capital to aggressively invest in high-growth initiatives.
Image source: Nvidia.
Nvidia
Perhaps it's no surprise that the second AI stock billionaire investors can't stop buying ahead of 2026 is the face of the AI revolution, Nvidia (NVDA 1.53%).
During the third quarter, Appaloosa's billionaire boss, David Tepper, purchased 150,000 shares of Nvidia, which comes on top of the 1,450,000 shares he bought during the June-ended quarter. Billionaire Dan Loeb at Third Point added 50,000 shares in the latest quarter, which brings his total stake in Nvidia (which has been purchased since Jan. 1, 2025) to 2,850,000 shares.
It can't be said enough how valuable sustainable moats are on Wall Street. Nvidia's graphics processing units (GPUs) are the clear top choice by businesses overseeing AI-accelerated data centers. On top of controlling the bulk of AI-GPU market share, none of Nvidia's external competitors have truly challenged the compute capabilities of its hardware. With CEO Jensen Huang aiming to introduce a new advanced chip annually, it appears unlikely that Nvidia's GPUs will cede their spot atop the pedestal anytime soon.
NASDAQ: NVDA
Key Data Points
However, Nvidia's unsung hero might just be its CUDA software platform. This is the toolkit developers rely on to maximize the compute potential of their Nvidia GPUs, including the building and training of large language models. CUDA is ensuring that customers remain loyal to Nvidia's ecosystem of products and services.
But the one concern for Nvidia in the new year is that history hasn't been kind to next-big-thing trends over the last three decades. Every game-changing technology needs ample time to mature and evolve. Most companies have yet to optimize their AI solutions, signifying the potential that we're in an AI bubble. If an AI bubble were to form and burst in 2026, Nvidia stock would likely take it on the chin.
Meta Platforms
The third AI stock billionaires are piling into ahead of 2026 is social media titan Meta Platforms (META 2.52%). This shouldn't come as a surprise to those who track 13Fs, since Meta has been a top holding of several billionaire money managers throughout the year.
During the third quarter, four billionaire fund managers opened a new position or added to an existing position in Meta Platforms:
- Coatue Management's Philippe Laffont purchased 355,090 shares (Meta is Coatue's No. 1 holding).
- Third Point's billionaire chief, Dan Loeb, bought 70,000 shares.
- Duquesne Family Office's billionaire investor Stanley Druckenmiller opened a 76,100-share stake.
- Viking Global Investors billionaire boss Ole Andreas Halvorsen oversaw the purchase of 663,504 shares.
NASDAQ: META
Key Data Points
Similar to Alphabet, the beauty of Meta's operating model is that it has a solid foundation outside of the AI revolution. Approximately 98% of its net sales come from advertising tied to its highly popular social media platforms, including Facebook, Instagram, WhatsApp, Threads, and Facebook Messenger. According to Meta, an average of 3.54 billion people visited its family of apps daily in September. This makes it a go-to for businesses wanting to get their message(s) in front of relevant eyeballs.
Where Meta earns its AI chops, at least for the moment, is through its incorporation of generative AI solutions into its advertising platform. Companies using Meta's sites for advertising can leverage generative AI to create custom static and video advertisements to appeal to specific users. If this results in improved click-through rates on ads, it can further increase Meta's ad-pricing power.
Meta Platforms also has a boatload of cash in its coffers. It closed out September with almost $44.5 billion in combined cash, cash equivalents, and marketable securities, and is on pace to easily top $100 billion in cash generated from operating activities in 2025. Mark Zuckerberg's company has the luxury of investing heavily in AI without needing to monetize it immediately.
