Billionaire Steve Mandel Just Bought $100 Million More of His Top Artificial Intelligence (AI) Stock Pick

Group 1 - Billionaires increasing their stakes in companies can indicate attractive pricing or growth potential, as seen with Lone Pine Capital's addition of 146,000 shares in Meta Platforms, bringing their total stake to nearly 9% of their portfolio valued at $1.19 billion [1] - Meta Platforms generated $47.3 billion in revenue in the fourth quarter, converting $28.3 billion into operating profit, resulting in an impressive 61% operating profit margin [2][3] - CEO Mark Zuckerberg aims to expand beyond social media into virtual reality (VR), augmented reality (AR), and artificial intelligence (AI), with significant investments planned for AI infrastructure [4][5] Group 2 - Meta expects to spend $60 to $65 billion on capital expenditures by 2025, primarily for AI computing capacity, which has raised concerns among some investors about the lack of immediate returns [5][6] - The stock has risen over 20% in early 2025, leading to questions about its current valuation, which stands at 28 times forward earnings, the highest in some time [8][9] - Despite the higher valuation, Meta's stock remains cheaper compared to peers like Apple and Microsoft, which trade at 33 and 31 times forward earnings, respectively [10]