AI Stocks Billionaires Are Buying: Nvidia, TSMC, and Amazon
Following the investment moves of billionaire hedge fund managers is made possible by the requirement to file a Form 13F every quarter when a fund's assets under management reach $100 million or more. These filings disclose the securities held at the end of each quarter, information that becomes publicly available 45 days later. While not real-time data, it offers a valuable glimpse into where billionaires are identifying opportunities in the market, especially within the rapidly evolving landscape of artificial intelligence.
Among the most popular artificial intelligence stocks accumulated during the second quarter were Nvidia (NVDA 0.35%), Taiwan Semiconductor Manufacturing (TSM -1.46%), and Amazon (AMZN -0.84%). These three companies stand out as key players shaping the future of AI adoption and implementation across various industries.
Nvidia
Nvidia has consistently led the AI investment landscape since its inception, owing to its best-in-class graphics processing units (GPUs). Despite its impressive performance over the past few years, billionaires have continued to increase their Nvidia holdings. David Tepper's Appaloosa investment firm significantly boosted its Nvidia position by nearly 500% in Q2, now comprising 4.3% of its total portfolio. Similarly, Daniel Loeb's Third Point made a substantial move, increasing its Nvidia stake by 93%. This fund, which held no Nvidia shares at the beginning of 2025, now allocates 5.9% of its portfolio, representing nearly half a billion dollars, to the company, signaling a strong bullish sentiment.
Nvidia anticipates AI hyperscalers will spend approximately $600 billion on data center capital expenditures this year. With the company projected to generate around $206 billion in revenue this year, it's estimated that Nvidia captures about one-third of all data center spending. Looking ahead, this figure is expected to surge dramatically, with Nvidia projecting global data center capital expenditures of $3 trillion to $4 trillion by 2030. This projection highlights the growing demand for computing power to fuel AI advancements.
If Nvidia maintains a similar market share, it is poised to become a major beneficiary over the next five years. Given the significant positions billionaires are taking in Nvidia's stock, investors might consider following suit and exploring this compelling opportunity.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (TSMC) is a highly sought-after AI stock due to its crucial position within the industry. As the leading chip foundry, TSMC manufactures chips for nearly every company developing AI computing hardware, including Nvidia. This has made it a popular investment among billionaires, with Stanley Druckenmiller allocating 4.4% of his fund to the stock. David Tepper's Appaloosa fund holds a slightly smaller position size of 3.6%, but significantly increased its stake by 280% during the quarter.
If Nvidia's market projections hold true, TSMC is strategically positioned to capitalize on the substantial AI-driven spending boom. The company has solidified its dominance in the industry through cutting-edge technology, which Nvidia CEO Jensen Huang has hailed as "magic".
As long as demand for more advanced computing power persists, investing in TSMC remains a prudent decision. The company's leading position and technological expertise make Taiwan Semiconductor stock a compelling choice for today's investors.
Amazon
While Amazon may not immediately come to mind when discussing AI, its e-commerce platform isn't the primary driver of its profitability. Amazon Web Services (AWS), the company's cloud computing division, is the largest profit contributor. In Q2, AWS accounted for 53% of Amazon's operating profits, despite generating only 18% of total revenue.
Cloud computing stands to benefit significantly from the AI revolution, as many companies lack the resources to build large-scale AI-focused data centers. Instead, they leverage cloud computing providers like AWS to rent computing power and run AI workloads on their servers. This trend presents a substantial growth opportunity for AWS and other cloud computing players, explaining why billionaires are increasing their stakes in the stock.
Daniel Loeb of Third Point and David Tepper of Appaloosa both acquired shares of Amazon in Q2. Amazon is Third Point's second-largest holding, representing nearly 8% of the total portfolio value. Amazon is Appaloosa's third-largest holding, accounting for a larger percentage at 9.2% of the portfolio value.
These three stocks are widely favored by billionaires, suggesting investors might consider following their lead and accumulating shares in these impressive businesses. Beyond these specific examples, it's also worth noting that AI hardware optimization, energy efficiency in data centers, and cybersecurity for AI systems are other growing areas that could present further investment opportunities within the sector. Exploring companies innovating in these fields could lead to identifying future AI investment winners.
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