Billionaire investor Bill Ackman has concentrated nearly 40% of his Pershing Square Holdings hedge fund into three artificial intelligence (AI) stocks, according to recent disclosures. The prominent investor, known for his outspoken views on social media platform X and for managing a concentrated portfolio of just 10 to 12 stocks, has placed significant capital in Alphabet, Amazon, and Meta Platforms. This strategic allocation reflects growing confidence in AI stocks among institutional investors seeking compelling valuations in the technology sector.
Pershing Square Capital Management has invested over 14% of its capital in Alphabet, primarily through Class C shares. The investment has proven successful as Alphabet navigated a favorable antitrust ruling in 2025, when a federal judge agreed with Department of Justice allegations about monopolistic practices but stopped short of imposing severe penalties.
Bill Ackman’s AI Stock Strategy Emphasizes Value
Alphabet benefited from multiple catalysts during 2025, according to investment analysis. The company’s Gemini AI models demonstrated competitive effectiveness against emerging chatbots, while Google’s AI overviews maintained the company’s dominant search market share and increased query activity. Additionally, Alphabet’s custom tensor processing units (TPUs) provide a cost advantage by reducing reliance on third-party chip suppliers like Nvidia.
However, the stock now trades at over 28 times forward earnings, above its five-year average. Pershing believes continued execution in AI development, along with growth in YouTube and Waymo, could drive further upside, though the valuation premium has diminished the easy value proposition Alphabet represented earlier in 2024.
Amazon Investment Highlights E-Commerce and Cloud Opportunities
Pershing acquired Amazon shares in 2024 at what the firm characterized as a compelling valuation. In a recent investor presentation, Pershing stated that Amazon operates “two of the world’s great, category-defining franchises” through its e-commerce platform delivering $700 billion in annual gross merchandise value and Amazon Web Services, described as the leading cloud hyperscaler.
The hedge fund views Amazon’s planned $200 billion capital expenditure budget for 2026 as addressing capacity constraints rather than overinvestment. Meanwhile, Pershing sees substantial opportunity to double profitability in the retail business. Nevertheless, the company faces challenges from high tariffs and investor concerns about its AI infrastructure strategy that will require demonstration of returns in coming years.
Meta Platforms Represents New AI Stock Position
During the fourth quarter of 2025, Pershing established a new $1.8 billion stake in Meta Platforms. In its annual presentation, the firm characterized Meta as “a deeply discounted valuation for one of the world’s greatest businesses.” The social media company experienced 22% revenue growth in 2025, according to the report.
Meta’s AI applications in digital advertising distinguish it from other hyperscalers, according to investment analysis. The company deploys AI for ad content creation, campaign development, and serving users with relevant advertisements that increase engagement and advertiser appeal. Meta plans to spend between $115 billion and $135 billion on AI-related capital expenditures in 2026.
Pershing views Meta as well positioned to accelerate earnings following planned infrastructure spending. The fund believes the core advertising business’s expansion ability can absorb excess capacity, offsetting potential overinvestment risks. Trading at 21 times forward earnings, Meta’s valuation appears reasonable within the AI sector, though investors await proof of compelling returns on massive capital investments.
The performance of these three AI stocks in Ackman’s portfolio will largely depend on successful execution of ambitious AI infrastructure plans and demonstration of tangible returns from unprecedented capital expenditure levels. Investors will closely monitor quarterly earnings reports and management commentary on AI monetization throughout 2026.