In this article, we will discuss the 15 Best AI Stocks to Invest in According to Billionaires.
On March 3, Bill Brennan, the CEO of Credo Technology, appeared on CNBC to discuss the current state of the AI industry and his company’s role within the global infrastructure build-out. He firmly supported the current AI spending outlook and argued that the massive global investment in this technology is rooted in sound fundamentals. He rejected the idea that this is a typical cyclical market, instead describing it as a fundamental architectural shift and a structural build-out that will span the next five to ten years.
Regarding geopolitical tensions in the Middle East, including the conflict involving Iran and the strike against an AWS facility in Bahrain, Brennan noted that while the region faces short-term chaos, the AI build-out is global in nature. He described the Gulf states as resilient and noted significant long-term upside for the region as a hub for AI and data centers, though he does not believe the current conflict will have a material impact on the industry in the short term.
Earlier on February 26, Seana Smith of Global X ETFs and Eric Mandl of Guggenheim Securities joined CNBC to suggest that strong tech results eased AI fears, but volatility, geopolitics, and rotation into energy keep markets cautious. Smith characterized the then-overnight tech prints as impressive, particularly highlighting Nvidia’s 75% data center revenue growth as a factor capable of calming fears within the AI trade.
She contrasted this with the anxiety surrounding software names. While she does not expect a total collapse of software, Smith does anticipate a multi-year period where clear winners and losers will emerge. Mandl addressed the scale of the AI opportunity, citing Dan Ives’ figure of $6 billion year-to-date from physical AI and robotics at Nvidia. He described the massive CapEx flowing through the system as a way for the market to substantiate proper valuations. Mandl emphasized the interdependence between agentic AI platform providers and traditional software companies, stating that model training will require significant time, energy, and a reliance on established software relationships.
Our Methodology
We used screeners to identify AI stocks and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. We then screened 15 stocks with over 20 billionaire investors from Insider Monkey’s database of billionaire holdings. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on March 13.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
15 Best AI Stocks to Invest in According to Billionaires
15. Cognex Corporation (NASDAQ:CGNX)
Dollar Value of Billionaire Holdings: $0.48 billion
Number of Billionaire Investors: 20
Cognex Corporation (NASDAQ:CGNX) is one of the best AI stocks to invest in according to billionaires. On February 11, Cognex Corporation reported financial results for Q4 and the full-year 2025, marked by a return to profitable growth. Q4 revenue rose 10% year-over-year to $252 million, while full-year revenue reached $994 million, which was a 9% increase. This was supported by increased year-end spending in factory automation and steady performance in logistics.
Profitability metrics showed substantial improvement, as adjusted diluted EPS grew 35% in Q4 to $0.27 and 38% for the full year to $1.02. Cognex maintained a robust balance sheet with $642 million in cash and no debt, generating $237 million in free cash flow during 2025. The company returned $206 million to shareholders through dividends and $151 million in share buybacks. Following a strategic review, the board approved an additional $500 million share repurchase authorization and initiated the exit of $22 million in non-core and low-margin revenue to sharpen business focus.
Cognex Corporation (NASDAQ:CGNX) now expects continued momentum with Q1 2026 revenue guided between $235 million and $255 million. The company is implementing operating model optimizations projected to deliver $35 million to $40 million in annualized cost reductions by the end of 2026. These efforts, combined with a salesforce transformation and investments in AI-enabled machine vision, are intended to deepen competitive advantages and drive long-term shareholder value.
Cognex Corporation (NASDAQ:CGNX) provides machine vision products that capture and analyze visual information to automate manufacturing and distribution tasks in the US, Europe, Greater China, and internationally.
14. Cloudflare Inc. (NYSE:NET)
Dollar Value of Billionaire Holdings: $1.31 billion
Number of Billionaire Investors: 20
Cloudflare Inc. (NYSE:NET) is one of the best AI stocks to invest in according to billionaires. On February 17, Cloudflare and Mastercard (NYSE:MA) announced a strategic partnership to enhance cyber defense for small businesses, critical infrastructure, and government entities. By combining Mastercard’s Recorded Future and RiskRecon monitoring capabilities with Cloudflare’s Application Security portfolio, the collaboration aims to provide a unified solution for managing digital risks.
This initiative is designed to help underserved organizations protect themselves against sophisticated threats without hindering their ability to innovate and scale in an increasingly interconnected global economy. The partnership focuses on eliminating security blind spots by identifying hidden or unprotected web assets and shadow IT.
Through the integration of Recorded Future’s data into Cloudflare Inc.’s (NYSE:NET) dashboard, users receive real-time security ratings and prioritized insights into vulnerabilities, such as authentication weaknesses and exposed infrastructure. This comprehensive view allows organizations to map their entire internet-facing environment and understand the severity of potential risks across their digital footprint. Beyond identification, the collaboration enables organizations to translate risk insights into immediate, actionable protection.
Cloudflare Inc. (NYSE:NET) operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides a cloud-based security solution to secure a range of combinations of platforms, such as public & private clouds, SaaS applications, and IoT devices.
