Billionaire Bill Ackman Has 14% of His $11.9 Billion Portfolio Invested in This AI Stock -- and Wall Street Thinks It's Poised to Soar

Core Viewpoint - Bill Ackman, through his hedge fund Pershing Square Capital Management, has made a significant investment in Alphabet, indicating confidence in the company's future in the AI sector [1][4]. Investment Details - Pershing Square holds 14% of its $11.9 billion portfolio in Alphabet, with investments in both Class A and Class C shares valued at over $1.67 billion as of Q1 2025 [3][6]. - Ackman initiated his position in Alphabet in Q1 2023, following initial concerns about Google's AI capabilities compared to competitors like OpenAI [4][5]. Performance and Analyst Sentiment - Alphabet has been a profitable investment for Ackman, with shares increasing over 60% since Q1 2023 [6]. - Wall Street analysts show a favorable outlook, with 16 out of 68 recommending Alphabet as a strong buy and an average 12-month price target suggesting a 17% upside potential [8][9]. Competitive Position and Challenges - Despite some concerns regarding antitrust issues and competition from generative AI, Alphabet's valuation is attractive, with a forward price-to-earnings ratio of 18.3, the lowest among the "Magnificent Seven" stocks [9]. - Alphabet's advancements in AI, such as the successful integration of AI features in its search engine and the growth of Google Cloud, are noteworthy [10]. Future Growth Potential - The company is expected to benefit from ongoing AI developments, and its Waymo self-driving car unit is seen as a potential significant growth driver [12].