Billionaire investor Chase Coleman has 46% of his portfolio invested in five standout artificial intelligence (AI) growth stocks.
Billionaire investor Chase Coleman is one of Wall Street’s original geniuses. At just 24 years old, he founded Tiger Global Management with initial funding from his former boss and mentor, iconic hedge fund manager Julian Robertson, Jr.
Coleman managed this $25 million seed capital and built it into one of the world’s most successful hedge fund empires, managing approximately $58 billion in assets. He is currently ranked as the 500th richest person in the world. forbes His net worth is estimated at $5.7 billion.
Coleman is best known for spotting big winners early on and making notable investments. spotify; Facebook, now meta platform (meta -2.21%); LinkedIn you currently own microsoft (MSFT -0.61%).
He’s no stranger to making bold bets, so it’s no surprise that to end 2023, Coleman had a whopping 45.8% of his Tiger Global Management stock portfolio invested in just five artificial intelligence (AI) stocks.
- Meta Platform: 18.8%
- Microsoft: 14.3%
- Amazon (AMZN -0.17%): 5.3%
- alphabet (google -1.58%) (GOOG -1.51%): 4%
- nvidia (NVDA -0.06%): 3.4%
To see why Coleman has such a large exposure to AI stocks, let’s take a look at some of his top holdings.
Image source: Getty Images.
1. Meta Platform
Meta Platforms is Coleman’s largest holding to date. This is not surprising since Coleman discovered the company when it was still Facebook.
When it comes to AI, Meta has a long history of using sophisticated algorithms to its advantage. The largest portion of its revenue comes from digital advertising, and the use of AI helps display more relevant ads and appropriate content to social media users.
As advertising spending continues to recover, 2023 has been a landmark year for the world’s second-largest digital advertiser. Meta has fueled growth by providing advertisers with a suite of AI-powered tools to help improve results.
The company also made its first foray into generative AI by developing the Large Language Model Meta AI (LLaMA), a state-of-the-art AI model available on all major cloud platforms, giving Meta a whole new revenue stream. The social media company also announced its first-ever dividend.
Meta stock sells for about 23 times forward earnings, a discount to the broader market. This may have influenced Coleman’s investment decision.
2. Microsoft
Microsoft surprised tech enthusiasts last year when it invested $13 billion in ChatGPT creator OpenAI, drawing attention to the potential applications of generative AI. Many tech giants followed suit, and the AI arms race began.
Microsoft has made the most of its investment, quickly integrating AI capabilities across a broad cross-section of its most popular productivity tools. Delivering the most popular AI models on the Azure cloud further fuels demand.
But one of the biggest opportunities lies with Microsoft Copilot, its AI-based assistant suite. The ability of these tools to make users more productive will drive strong demand, potentially generating $100 billion in additional revenue by 2027, according to Beth Kindig of the I/O Fund. Azure’s growth outpaced its competitors in the fourth quarter, with Microsoft noting that 6 percentage points of that growth came from increased demand for AI services.
Microsoft currently trades at 35 times future earnings. that slight Although at a premium to the overall market, AI stock is a must-own due to the company’s strong growth history and the additional potential brought by AI, which likely gave Coleman additional incentive to buy.
3. Amazon
Amazon also has a long history of deploying AI algorithms to manage its e-commerce business, using AI to make product recommendations, manage inventory levels, schedule delivery routes, and more.
The company has also jumped on the generative AI trend, using the technology to improve product descriptions, summarize reviews, and refine seller ads. Amazon also plans to offer customer-centric tools to answer specific product questions.
Additionally, Amazon Web Services (AWS), a leading cloud infrastructure provider, offers a laundry list of popular generative AI models through Bedrock AI. The company is also making multi-generational progress in the development of its AI processors (i.e. Inferentia and Trainium) to deliver improved and affordable AI processing to its cloud customers.
Despite its gains over the past year, Amazon stock is trading at only twice its forward sales, which is the norm for undervalued stocks, and that wouldn’t have escaped Coleman’s notice.
4. Alphabet
Like its rival Meta Platform, Alphabet generates the majority of its revenue from its ad technology business through Google Search. Alphabet has a long history of using AI to improve search and targeted advertising results, and a rebound in the digital advertising market will undoubtedly increase the company’s fortunes.
Alphabet has been hard at work developing generative AI solutions by integrating these next-generation capabilities into a broad cross-section of its namesake Google and Android products and services.
Its position as a leading cloud infrastructure provider puts the company in a perfect position to market its AI solutions to cloud clients. The recent debut of Gemini AI was hailed by Google as “the largest and most capable AI model.”
Additionally, Alphabet’s Vertex AI platform offers a suite of over 130 native AI models for customers to choose from.
One of the most interesting things about Alphabet stock is its price. It’s only 25x earnings, a discount to the broader market, and a valuation that Coleman can’t afford to give up.
5. Nvidia
Nvidia is a prime example of accelerating AI adoption. Those processors revolutionized the gaming industry, were tuned to handle rigorous AI, and have since become the gold standard.
Graphics processing units (GPUs) dominate the machine learning and data center markets, accounting for approximately 95% share of each market. This makes Nvidia the obvious choice as demand for generative AI surges.
While competitors are working furiously to develop competing chips, Nvidia’s pace of innovation makes it difficult for it to gain ground. Further frustrating these efforts is the company’s heavy spending on research and development, which amounted to $6.2 billion, or 16% of total revenue, in the nine months ended Oct. 29.
Despite the stock’s triple-digit rise, Nvidia is still incredibly cheap, with a price/growth (PEG) ratio below 1, the standard for undervalued stocks, and Coleman was no doubt well aware of this. .
Randi Zuckerberg, a former director of market development, Facebook spokesperson and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an Alphabet executive, is a member of The Motley Fool’s board of directors. Danny Vena works at Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool holds positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Spotify Technology. The Motley Fool recommends the following options: Buy Microsoft’s January 2026 $395 call and sell Microsoft’s January 2026 $405 call. The Motley Fool has a disclosure policy.
