1 Artificial Intelligence (AI) Stock Billionaires Have Been Buying Hand over Fist

Group 1: Investment Interest - Several hedge funds, including Bridgewater Associates, Tiger Global Management, and Soros Fund Management, are increasing their positions in Alphabet [1] - The stock has seen significant interest, with a 25% increase in 2024 and over 15% rise since the last 13F filing [4] Group 2: Business Segments - Alphabet's business can be analyzed through two main segments: advertising and artificial intelligence (AI) [2] - Advertising revenue constituted 77% of Alphabet's total revenue in Q1, highlighting its importance [2] Group 3: AI and Cloud Computing - Alphabet has improved its AI product launches, with new technologies generating consumer interest, particularly through features like AI summaries in Google searches [3] - Google Cloud, with a 28% year-over-year revenue increase in Q1, is a preferred choice for AI developers, with 90% of generative AI unicorns as customers [4] Group 4: Valuation - Alphabet's stock trades at a forward price-to-earnings (P/E) ratio of 23, slightly above the S&P 500's 21.6 [5][7] - Given Alphabet's growth prospects, the premium valuation is justified, suggesting it may outperform the S&P 500 in the long term [8]