Billionaires Are Loading Up on These 3 Unstoppable AI Stocks That Will Dominate Tech’s Future

Wall Street's elite are placing billion-dollar bets on artificial intelligence—and these three stocks sit at the center of their portfolios.

The AI Arms Race Heats Up

Forget traditional tech plays—today's wealth builders chase companies shaping entire industries through machine learning. These aren't speculative startups but established players deploying AI at unprecedented scale.

Silicon Valley's New Power Trio

Billionaire investors bypass conventional wisdom, targeting firms with proprietary datasets and computational advantages that create insurmountable moats. Their moves signal where technology infrastructure gets built over the next decade.

Why Institutions Can't Ignore This Shift

While retail traders chase meme stocks, smart money flows toward companies solving actual business problems through automation and predictive analytics. The gap between AI haves and have-nots widens daily—just ask any hedge fund manager still trying to explain their blockchain investments.

The future arrives whether Wall Street prepares or not. These three stocks represent bets that it's coming faster than anyone expects.

Image source: Getty Images.

Nvidia

Nvidia has been at the top of the AI investing world since its inception, as its graphics processing units (GPUs) are best in class. It has been an incredible performer over the past few years, but that hasn't stopped billionaires from buying more Nvidia stock.

David Tepper's Appaloosa investment firm increased its Nvidia position by nearly 500% in Q2, and it now makes up 4.3% of its portfolio. Daniel Loeb from Third Point also made a significant move, increasing its Nvidia position by 93%. This fund owned zero Nvidia shares at the start of 2025. Now, Nvidia makes up 5.9% of its portfolio with nearly half a billion dollars invested in the company. Clearly, they're quite bullish on the stock.

Nvidia projects that the AI hyperscalers will spend about $600 billion on data center capital expenditures this year. With the company projected to generate about $206 billion in revenue this year, it's SAFE to say that it gets about a third of all data center spending. However, that figure is expected to skyrocket by 2030, with Nvidia estimating that $3 trillion to $4 trillion will be spent on global data center capital expenditures by 2030.

Should Nvidia capture a similar amount of revenue, it WOULD be a massive winner over the next five years. With several billionaires seeing the writing on the wall and taking significant positions in Nvidia's stock, I think investors would be smart to follow their lead.

Taiwan Semiconductor Manufacturing

Taiwan Semiconductor is an extremely popular AI stock based on its position in the industry. It's by far the leading chip foundry, and nearly every company that's making AI computing hardware is utilizing its chips, including Nvidia. This has caused it to become a popular investment among billionaires, with Stanley Druckenmiller devoting 4.4% of his fund to the stock. David Tepper's Appaloosa fund has a slightly smaller position size of 3.6%, but he massively increased its stake by 280% during the quarter.

Should Nvidia's market projection pan out, Taiwan Semiconductor will be well positioned to profit from this massive AI spending spree. The company has cemented itself at the top of the industry with leading technology, which Nvidia CEO Jensen Huang has described as "magic."

As long as there is demand for more advanced computing power, this will be a smart investment. That seems like a safe bet, making Taiwan Semiconductor stock a no-brainer buy today.

Amazon

Amazon may not be the first company you think about when AI is discussed. Its e-commerce platform is likely the first thing that comes to mind, but it's not what pays the bills. Instead, Amazon's cloud computing wing, Amazon Web Services (AWS), is the biggest profit driver for the company. In Q2, AWS made up 53% of Amazon's operating profits despite only generating 18% of total revenue.

Cloud computing is a massive beneficiary of the AI arms race, as many companies can't afford to build a massive AI-focused data center. Instead, they rent out computing power from a cloud computing provider like AWS and run AI workloads on its servers. This is a massive growth trend for AWS and other cloud computing players, and it's no wonder that billionaires are taking a larger stake in the stock.

Both Daniel Loeb of Third Point and David Tepper of Appaloosa purchased shares of Amazon in Q2. Amazon is Third Point's second-largest position, making up nearly 8% of total portfolio value. Amazon is Appaloosa's third-largest holding, but it makes up a larger percentage at 9.2% of portfolio value.

All three of these stocks are popular among billionaires, and I think investors should follow their lead and scoop up shares of these impressive businesses.