The Motley Foolยท2025-09-26 10:00Core Insights - The article emphasizes the long-term growth potential of artificial intelligence (AI) investing, highlighting key stocks that billionaires are increasingly buying into [1] Group 1: Nvidia - Nvidia is recognized as a leader in AI investing due to its top-tier graphics processing units (GPUs), which have shown exceptional performance [5] - David Tepper's Appaloosa investment firm increased its Nvidia position by nearly 500% in Q2, now constituting 4.3% of its portfolio, while Daniel Loeb's Third Point raised its stake by 93%, making Nvidia 5.9% of its portfolio with nearly half a billion dollars invested [6] - Nvidia projects that AI hyperscalers will spend approximately $600 billion on data center capital expenditures in 2023, with the company expected to generate around $206 billion in revenue, capturing about one-third of all data center spending [7][8] Group 2: Taiwan Semiconductor Manufacturing - Taiwan Semiconductor Manufacturing is a leading chip foundry crucial for AI computing hardware, with significant investments from billionaires like Stanley Druckenmiller and David Tepper, who increased their stakes by 280% and holds 3.6% of his portfolio in the stock [9] - The company is well-positioned to benefit from the anticipated massive AI spending, with its technology being described as "magic" by Nvidia's CEO [10] Group 3: Amazon - Amazon's cloud computing division, Amazon Web Services (AWS), is the primary profit driver, contributing 53% of operating profits despite only generating 18% of total revenue [11] - AWS is benefiting from the AI arms race as companies prefer renting computing power rather than building their own data centers, indicating a significant growth trend for AWS [12] - Both Daniel Loeb and David Tepper have increased their stakes in Amazon, with it being the second-largest position for Third Point and the third-largest for Appaloosa, making up 8% and 9.2% of their respective portfolios [13]