Billionaires Flock to AI Stocks Billionaires Flock to AI Stocks

Written By Michael Gary Scott

Investors can’t stop buzzing about Nvidia’s meteoric rise. In just five years, shares soared by a staggering 3,400%, with a tripling in price in the past 12 months alone.

The driving force behind this surge? Artificial intelligence (AI). Nvidia’s chips now dominate the AI market, positioning them as the likely powerhouse in an AI-driven future.

However, the AI frenzy is not exclusive to Nvidia. Billionaire investors are channeling massive investments into other AI companies, and some particularly stand out.

Nvidia CEO’s Surprising AI Pick

Jensen Huang, Nvidia’s CEO, may have most of his fortune tied to Nvidia stock, but his interest in diverse AI ventures tells a different story. One notable investment is in SoundHound AI, a $1.6 billion enterprise with enormous growth potential.

Despite an initial small investment by Nvidia in SoundHound, the stock witnessed a remarkable triple-digit surge. With support also coming from billionaire investor Seth Klarman, SoundHound’s focus on cutting-edge voice AI technology has garnered attention from major players like Hyundai, Oracle, and White Castle.

Trading at a premium of 23 times its sales, SoundHound’s future looks promising, especially with a projected 53% boost in sales this year.

Alphabet’s Bold Play in AI

A recent analysis of leading billionaire investors unveiled Alphabet, Google’s parent company, as a top favorite across industries. As AI’s potential threatens Google’s core search business, the company is investing heavily in AI augmentation and new tool development.

With access to proprietary data from Google, YouTube, and Google Maps, Alphabet has a unique advantage in training AI models. However, challenges persist, such as legal battles over data usage, exemplified by The New York Times Company’s lawsuit against OpenAI.

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Despite uncertainties about Alphabet’s AI future, billionaire investors remain undeterred, eagerly joining the Alphabet bandwagon.

Considering an Investment in Alphabet?

Before diving into Alphabet stock, it’s wise to ponder the insights:

The Motley Fool Stock Advisor team recently identified the top 10 stocks for investors, skipping Alphabet. The curated stocks hold potential for substantial returns, reflecting Stock Advisor’s historical success in outperforming the S&P 500.

Reflecting on Nvidia’s remarkable journey post-recommendation, with the potential to turn $1,000 into $740,690, Stock Advisor’s track record speaks volumes about its stock selections.