Bill Ackman’s Latest Bet: This $123 Billion AI Titan Just Got a Billionaire’s Stamp of Approval
Billionaire investor Bill Ackman just placed a massive bet on an AI powerhouse that's already notched a staggering $123 billion market victory—and Wall Street's scrambling to decode his move.
The AI Gold Rush Heats Up
Ackman's Pershing Square Capital snagged shares in a company dominating the artificial intelligence space, signaling a seismic shift in big-money investment strategies. This isn't just another tech play—it's a calculated wager on the infrastructure powering the next digital revolution.
Why This Move Matters
When a hedge fund titan known for activist stakes makes a move, markets listen. This purchase screams conviction in AI's long-term profitability beyond the current hype cycle. Forget speculative crypto pumps—this is institutional money betting on tangible tech infrastructure.
The Cynical Take
Because nothing says 'sure thing' like billionaires chasing returns in the most overheated sector since...well, their last overheated sector play. But hey—at least it's not another NFT fund.
Image source: Getty Images.
Ackman's 13F securities
At Pershing Square Capital Management, the billionaire oversees more than $13 billion in 13F securities -- these are positions and/or moves that must be reported on a quarterly basis to the Securities and Exchange Commission. Managers of more than $100 million in U.S. equities must file this FORM four times a year.
In the quarter, Ackman didn't make many moves. His primary ones were selling his position in railwayand increasing his holding ofclass A shares by about 20%. And his biggest was the purchase of the following stock market giant:
Ackman opened a new position in(AMZN 1.23%), buying 5,823,316 shares of the company. This represents about 9% of his portfolio and places Amazon within his top five holdings.
The MOVE offers Ackman a bet on e-commerce, since Amazon is a leader in this area, and a significant investment in AI. Amazon uses AI to improve its e-commerce business, from fulfillment center operations to delivery, and this helps the company lower its costs. Amazon hasn't stopped there, though. The company's biggest AI success story may be in its Amazon Web Services (AWS) unit.
This cloud computing giant -- it's the global leader -- offers a wide range of AI products and services to its customers, and this has helped AWS reach a $123 billion annual revenue run rate. So, while some companies are still in the investing stages when it comes to AI, Amazon already is benefiting from this technology.
A trillion-dollar opportunity
And considering the forecasts for AI market growth -- today's billion-dollar market is expected to reach into the trillions by the early 2030s -- this movement may be far from over. So, AWS' AI revenue growth might just be getting started. It's also important to remember that as the leading cloud company, AWS has a significant potential audience for its AI offerings -- many customers may opt for AWS, a company they're already working with, rather than switching to another for AI products and services.
Beyond the AI growth story, Amazon also likely has impressed Ackman with its long track record of earnings gains -- and a couple of years ago when inflation weighed on earnings, the company revamped its cost structure, a move that brought it from a loss to a profit in a year and continues to drive earnings higher. These cost structure changes should work to Amazon's advantage in the quarters to come too, in both strong and weaker economic environments.
Now, you may be wondering whether you should follow Bill Ackman and pile into Amazon shares. Today, the stock trades for 34 times forward earnings estimates, down from more than 42 times late last year. I consider this a bargain for a company that's leading in the growth areas of e-commerce and cloud computing -- and already has posted a win in the hot field of AI. And with more growth to come over the long term in these three areas, it's a great idea to take inspiration from Ackman and get in on Amazon shares.
