Billionaire Bill Ackman Is Betting Big on AI -- and He Just Revealed a New $2 Billion Investment

Core Insights - More than half of Pershing Square Capital Management's portfolio is now invested in high-profile artificial intelligence (AI) stocks, indicating a significant shift towards AI investments by the firm [1] - The deadline for institutional investors to file Form 13F with the SEC provides insights into the investment strategies of top money managers, including Bill Ackman of Pershing Square [2] Investment Focus - Bill Ackman has opened a $2 billion position in Meta Platforms, which represents about 10% of Pershing Square's invested assets, highlighting a strong belief in the long-term potential of AI stocks [5][12] - AI stocks make up over half of Ackman's portfolio, with significant investments in Uber Technologies (20%), Alphabet (19%), and Amazon (8.7%) [7] AI Market Potential - PwC analysts estimate that AI technology could create $15.7 trillion in global economic value by 2030, suggesting a vast opportunity for companies involved in AI [6] - Meta's integration of generative AI into its advertising platforms is expected to enhance click-through rates and improve ad pricing power, showcasing the tangible benefits of AI applications [13] Company Performance - Uber Technologies is Ackman's largest holding, with over 30 million shares purchased, and it relies heavily on AI for optimizing its ride-sharing services [8] - Alphabet has seen a 48% increase in Google Cloud sales during the fourth quarter, driven by the incorporation of AI tools [9] - Amazon Web Services, the leading cloud infrastructure platform, has reaccelerated sales growth through generative AI solutions, contributing significantly to Amazon's operating income [10] Meta Platforms' Valuation - Meta's current share price is viewed as undervalued, trading at 18.6 times forecast earnings per share in 2027, which is an 11% discount to its average forward price-to-earnings ratio over the last five years [17] - Meta's family of apps attracts an average of 3.58 billion daily users, providing strong ad pricing power and abundant operating cash flow [16]