2 Top AI Stocks Prominent Billionaires Are Buying

Group 1: Core Insights - Billionaire investors, including Stanley Druckenmiller and Bill Ackman, are actively buying shares of leading tech companies, particularly Microsoft and Amazon, in the second quarter [1][2] - The global adoption of artificial intelligence (AI) is projected to contribute $15.7 trillion to the global economy by 2030, creating significant investment opportunities in tech [1] Group 2: Microsoft - Stanley Druckenmiller initiated a new position in Microsoft, with other billionaires like Daniel Loeb and Chase Coleman also increasing their stakes [3][4] - Microsoft reported $102 billion in net profit on $282 billion in revenue over the past year, showcasing strong financial performance [4] - Azure cloud service revenue grew 39% year over year in the June-ending quarter, surpassing the previous quarter's growth of 33% [5] - Microsoft's capital expenditures have more than doubled to $64 billion over the past two years, indicating strong investment in AI and cloud infrastructure [7] - The company's forward price-to-earnings (P/E) ratio is 32, which is nearly three times its expected long-term earnings growth of 12% [9] Group 3: Amazon - Bill Ackman purchased over 5.8 million shares of Amazon, valued at nearly $1.3 billion, reflecting confidence in the company's growth potential [10][11] - Amazon's e-commerce sales grew 12% year over year on a constant-currency basis, marking the first quarter of double-digit growth for its online store since Q3 2022 [13] - The operating profit for Amazon has surged by 471% since 2022, reaching $77 billion over the last year [14] - Amazon Web Services (AWS) is growing at a slower rate compared to Microsoft Azure, but its generative AI business is experiencing triple-digit growth [15][16] - The stock's forward P/E of 34 indicates high investor expectations, with consensus estimates predicting an annualized earnings growth rate of 18% for Amazon [17]