Top 5 AI Stocks Preferred by Billionaires and Fund Managers
Artificial intelligence is rapidly transforming the world, and the stock market is taking notice. Billionaires and fund managers are increasingly investing in AI stocks, betting that these companies will be the leaders of the next wave of innovation. In this article, we will take a look at the top 5 AI stocks preferred by big money investors.
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1. C3.ai, Inc. (NYSE:AI)
Stock Price: $37.11
Market Cap: $4.303 B
24h Volume: $30,196,135
C3.AI platform is an application that enables users to design, develop, and deploy enterprise AI applications such as C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry-specific customer relationship management solution; and C3 Generative AI Product Suite that enables to track and present data.
Over the past few years, the company has undergone several name and business line changes. It has explored ventures in industries like energy (formerly known as C3 Energy) and the Internet of Things (previously operating as C3 IoT). In 2019, it settled on the name C3.ai, Inc. The stock is currently experiencing a significant surge this year, riding the wave of the AI boom, gaining approximately 220% year-to-date.
According to Insider Monkey’s database, C3.ai, Inc. (NYSE: AI) had investments from 8 billionaires by the end of the first quarter, with notable names such as Philippe Laffont, D. E. Shaw, and Ken Griffin among them.
2. Super Micro Computer (NASDAQ:SMCI)
Stock Price: $344.52
Market Cap: $18.119 B
24h Volume: 2,803,482
Super Micro Computer is a global leader in high-performance, energy-efficient server technology. The company offers comprehensive computing solutions catering to data centers, cloud computing, enterprise IT, big data, high-performance computing (HPC), and embedded markets.
Billionaire Alex Sacerdote’s hedge fund, Whale Rock Capital, increased its ownership in SMCI by 42% during Q1, raising the value of its shares to nearly $253 million. Similarly, Jim Simons’ Renaissance Technologies raised its stake in SMCI by 22.7% during the same period, bringing the value of its shares to nearly $223 million.
3. Exscientia (NASDAQ:EXAI)
Stock Price: $7.76
Market Cap: $958.639M
24h Volume: 419,217
Exscientia is a global pharma-tech company that focuses on using patient-first AI to discover drugs in a faster and more efficient way. The CEO of Exscientia is none other than Andre Hopkins, one of the most distinguished scientists in modern drug discovery.
Japanese investment company Softbank Group acquired 5.7 million shares of EXAI during the first quarter, which is now valued at $47 million. Softbank’s founder, multi-billionaire Masayoshi Son, holds the largest ownership in the company. The Bill and Melinda Gates Foundation also has a significant stake in EXAI, valued at $13.16 million. Moreover, hedge fund Marshall Wace, led by billionaire Paul Marshal, holds a stake in EXAI worth $11.8 million.
4. Schrodinger, Inc (NASDAQ:SDGR)
Stock Price: $37.31
Market Cap: $2.7B
24h Volume: 1,543,958
Similar to Exscientia, Schrodinger’s platform leverages AI technology to make the drug discovery process quicker. The company is a market leader in developing the latest computer tools and software for the biotechnology and pharmaceutical field.
Microsoft founder, Bill Gates, currently holds a stake worth $350.76 million in Schrodinger. Likewise, billionaire Warren Stephens, and his investment firm Stephens Investment Management, own a stake valued at $35.4 million in SDGR, as per their Q1 holdings.
5. UIPath (NYSE:PATH)
Stock Price: $16.12
Market Cap: $8.852B
24h Volume: 10,616,058
Founded in 2005, UiPath specializes in creating and advancing robotic process automation software. The company’s platform provides reliable development tools, automates complex processes, and enables the utilization of multiple robots on a single virtual machine.
UiPath automates repetitive tasks through robotic process automation (RPA), which allows employees to focus on more creative and innovative responsibilities, ultimately benefiting the company’s long-term growth.
Founder and CEO of ARK, Cathie Wood, holds UIPath stock worth over $800 million, making it the fourth largest holding of Wood’s exchange-traded fund focused on disruptive technologies.
Investing in AI stocks can be a smart move for long-term investors who want to benefit from the growth of this sector. The five stocks we discussed in this article are some of the most popular and profitable ones among billionaires and fund managers, who have a track record of picking winners. These stocks are also diversified across different industries and markets, which can reduce the risk of relying on one single AI application or trend. However, investors should always do their own research and due diligence before making any investment decisions, as AI stocks can also be volatile and subject to regulatory and ethical challenges.
Why are these AI stocks so popular with investors?
The popularity of these AI stocks among investors can be attributed to their innovative technologies, scalability, and growth potential. AI’s wide applicability across diverse industries, coupled with its ability to enhance efficiency and productivity, makes these stocks attractive investment options. Moreover, the support from influential investors, the potential for disruptive innovation, and positive market sentiment further contribute to their popularity.
What are the risks of investing in AI stocks?
Investing in AI stocks carries inherent risks, including market volatility due to technology sector fluctuations and changing market sentiment. Regulatory challenges and evolving policies can impact AI companies’ operations, and competition and innovation may affect their market position. Technical limitations and data security concerns could hinder the performance of AI applications. Ethical dilemmas and slow market adoption may also impact investor confidence. Also, the dependency on specialized talent and the potential lack of profits in early-stage companies are significant risk factors. Economic downturns and global events can further affect AI stocks. As with any investment, thorough research, portfolio diversification, and risk assessment are crucial when considering AI stocks.
Why do billionaires and fund managers favor these specific AI stocks?
Billionaires and fund managers favor specific AI stocks for their high growth potential and disruptive nature in various industries. These AI companies have established themselves as market leaders, offering innovative solutions that enhance efficiency and productivity for businesses. The support from influential investors, along with strong financial performance and diverse applications, adds to their appeal. Besides, the global reach of AI and the potential for strategic partnerships and mergers, and acquisitions make these stocks attractive choices for investors looking for promising long-term opportunities.
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Any data, text, or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.
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