Billionaire Bill Ackman Has 14% of His Hedge Fund in 1 AI Stock That's Up 6,930%

2 weeks ago 6

Neil Patel, The Motley Fool

Mon, Jul 14, 2025, 5:09 PM 5 min read

Bill Ackman’s hedge fund, Pershing Square Capital Management, has made a palmy stake connected this starring AI enterprise.
With entree to monolithic amounts of data, incredibly fashionable products and services, and unmatched fiscal resources, this concern volition stay successful a presumption of power.
Despite precise favorable characteristics, investors tin bargain shares astatine a discount to the S&P 500.
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Billionaire Bill Ackman, who follows an concern doctrine akin to Warren Buffett, has vulnerability successful his Pershing Square Capital Management hedge money to the artificial quality (AI) boom. That mightiness spell against his firm's accustomed absorption of buying retail-based businesses.

But since this peculiar institution had its archetypal nationalist offering successful 2004, shares person risen 6,930% (as of July 9). Had you made a $1,000 concern successful this apical AI stock backmost then, you'd person astir $70,000 today.

Continue speechmaking to larn what concern this is and whether oregon not it should beryllium successful your portfolio.

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Through some Class A and Class C shares, Pershing Square had 14% of its assets (as of March 31) successful Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). The hedge money archetypal purchased the banal successful the archetypal 4th of 2023, astatine a clip erstwhile the institution was losing capitalist involvement arsenic OpenAI's ChatGPT became the speech of the town. There were concerns Alphabet had already mislaid the AI race. But successful emblematic fashion, being greedy erstwhile others are fearful, Ackman became an Alphabet shareholder.

The billionaire highlighted galore of the company's favorable qualities arsenic they subordinate to AI. Pershing Square called retired Google's organisation advantage, with the habits consumers person of utilizing Alphabet's products and services. The concern besides has unrivaled information to bid AI models on. And Alphabet has been astatine the forefront of AI for respective years, not conscionable hopping connected the bandwagon precocious similar galore others have.

More than 2 years since Ackman bought the stock, Alphabet remains a powerfulness subordinate successful the AI world. It has a starring household of models successful Gemini. Its crown jewel, Google Search, has an AI Overviews diagnostic that present has 1.5 cardinal monthly users. And the Google Cloud Platform offers a agelong database of AI tools to clients, which should registry beardown demand.

"All 15 of our products with a fractional a cardinal users present usage Gemini models," CEO Sundar Pichai said connected the first-quarter 2025 net call.

But possibly astir importantly, Alphabet has the fiscal resources to enactment ahead. Management plans to walk $75 cardinal connected superior expenditures this year. That's a batch of money. However, erstwhile the concern generates tens of billions of dollars successful nett income each quarter, having ample superior expenditures is easy.