No game-changing trend has captured the attention and capital of investors over the last three years quite like the rise and proliferation of artificial intelligence (AI). Empowering software and systems with the tools to make split-second decisions without human oversight is a multitrillion-dollar global opportunity -- and Wall Street's savviest billionaire money managers have taken notice.
Thanks to quarterly Form 13F filings with regulators, investors can track which stocks Wall Street's leading fund managers are buying, selling, and holding. Billionaire Bill Ackman of Pershing Square Capital Management has taken a liking to artificial intelligence stocks, with four preeminent companies accounting for 55% of Pershing Square's $15.5 billion portfolio.
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Pershing Square's billionaire boss is focused on AI applications and sustainable moats
Ackman, who's known as one of the stock market's leading activist investors, closed out 2025 with roughly $8.6 billion invested in a quartet of AI stocks:
- Uber Technologies (UBER 0.92%): 15.9% of invested assets
- Amazon (AMZN +3.23%): 14.28% of invested assets
- Alphabet (GOOGL +4.79%)(GOOG +4.94%): 13.83% of invested assets (12.46% GOOG/1.37% GOOGL)
- Meta Platforms (META +2.27%): 11.37% of invested assets
The two common themes among Ackman's sizable AI wagers are that he's focused on AI applications, not hardware, and is targeting companies with sustainable moats and/or rock-solid competitive advantages.
With regard to the former, Amazon and Alphabet have demonstrated the power of AI integration through their respective cloud infrastructure service platforms. Amazon Web Services (AWS) and Google Cloud rank No.'s 1 and 3, respectively, in global cloud infrastructure service spend.
NASDAQ: AMZN
Key Data Points
Since incorporating generative AI and large language model capabilities into their platforms, sales for AWS and Google Cloud have reaccelerated. During the fourth quarter, AWS delivered constant-currency sales growth of 24%, while Google Cloud's fourth-quarter revenue jumped 48% compared with the previous year.
These are also companies with foundational operating segments. Meta Platforms attracted an average of 3.58 billion daily people to its family of apps in December -- far more than any other social media platform. This affords Meta exceptional ad pricing power.
Meanwhile, Uber accounts for approximately three-quarters of the U.S. ride-share market. It's also intricately tied to the U.S. economy through food-delivery service Uber Eats and its burgeoning freight logistics segment.
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Billionaire Bill Ackman is eyeing price dislocations, too
Billionaire Bill Ackman also sees value in all four of these AI stocks. Pershing Square Capital Management's second-largest holding, Uber, is trading at 17 times forward-year earnings per share, effectively representing a low-water mark since going public in May 2019.
Amazon is historically cheap, as well, relative to its future cash flow. Throughout the 2010s, investors paid a median of 30 times year-end cash flow to own shares of this dual-industry leader (e-commerce and cloud infrastructure services). Today, they can purchase shares of Amazon at 9.6 times projected cash flow for 2027.
NASDAQ: GOOG
Key Data Points
Similar bargains can be found with Meta Platforms and Alphabet, which are trading at respective forward price-to-earnings ratios of 17 and 22 despite sustained double-digit sales growth at both companies.
Few billionaire money managers have more of their fund's invested assets wagered on the future of AI than Pershing Square's Bill Ackman.
