In this article, we will list the 5 Best Stocks to Buy According to Billionaire Ray Dalio. Please visit 15 Best Stocks to Buy According to Billionaire Ray Dalio if you would like to see the extended list and the methodology behind it.
Ray Dalio of Bridgewater Associates
5. Microsoft Corporation (NASDAQ:MSFT)
Bridgewater Associates’ Stake: $476 Million
Microsoft Corporation (NASDAQ:MSFT) has been a long-term holding for Bridgewater Associates for many years. A historical look at the 13F portfolio of the fund shows that the first position in the company was opened in the last quarter of 2010. This comprised nearly 2 million shares. The fund has since then held onto this stock, with some exceptions, though the numbers of shares owned has fallen sharply. The 2025 activity around this stake also makes for interesting reading. The fund built up a large position in the tech giant during the first two quarters before slashing this by 36% and 11% in the third and fourth quarter of 2025. Filings for the fourth quarter of 2025 show that Bridgewater owns just under a million shares of Microsoft.
Microsoft Corporation (NASDAQ:MSFT) is a favorite stock among elite hedge funds because it is perhaps the safest way to play the AI boom. Instead of having to attract new customers, the company simply injects AI into an existing user base of 3 billion people around the world that already use Microsoft products like Office 365, Windows, Azure. Azure, in particular, is often called the engine room of Microsoft growth. In early 2026, Azure revenue growth remained robust, around 33% year-on-year, driven largely by AI workloads. Microsoft also owns a 49% stake in OpenAI, the most valuable startup in the world. Hedge funds view this partnership as a massive moat that competitors like Amazon and Google are struggling to bridge.
4. Alphabet Inc. (NASDAQ:GOOGL)
Bridgewater Associates’ Stake: $498 Million
Alphabet Inc. (NASDAQ:GOOGL) has been a staple in the 13F portfolio of Bridgewater Associates since the middle of 2015. This holding stayed largely undisturbed for many years. Since 2022, however, the growth-focused fund has built up an impressive position in the technology giant, rising to 5.6 million shares in the second quarter of 2025. However, since then, Dalio has been dumping the stock, reducing the stake by 52% and 40% in the third and fourth quarter of 2025, respectively. At the end of the fourth quarter of 2025, the fund owned just a little over 1.5 million shares in the company.
READ MORE: 33 Stocks That Should Double in 3 Years.
Alphabet Inc. (NASDAQ:GOOGL) remains one of the most reasonably valued technology stocks amid the AI boom. For example, certain Alphabet competitors have been trading at 40x P/E ratios, sparking fears about an AI bubble and the impact of a slowdown on the overall stock market. Even in this environment, Alphabet shares have traded at a Forward P/E of approximately 28x. While providing a margin of safety to elite investors, the growth story of Google Cloud also encourages hedge fund ownership of the stock. Google Cloud has emerged as a primary beneficiary of enterprise AI workloads in recent months, and become a direct competitor to cloud heavyweights like AWS and Azure.
3. Salesforce, Inc. (NYSE:CRM)
Bridgewater Associates’ Stake: $512 Million
Salesforce, Inc. (NYSE:CRM) has featured in the 13F portfolio of Bridgewater Associates since late 2011. Back then, the position was a small one, consisting of just 34,000 shares. Dalio started buying up the stock again in 2024, growing the number of shares owned by his fund from 170,000 in the first quarter of 2024 to close to 2 million at the end of the fourth quarter of 2025. In six of the last eight quarters, the fund has loaded up on the stock. The two other quarters in which this position was reduced, including the fourth quarter of 2025, represent minor reductions compared to the buying activity.
Salesforce, Inc. (NYSE:CRM) has attracted interest from elite hedge funds because of three primary reasons over the course of the past decade and a half. These are an aggressive capital return strategy, a successful Agentic AI pivot, and a transition into a high-margin value play. For example, in March 2026, Salesforce authorized a historic $25 billion share buyback program, which is the first half of a total $50 billion authorization. Salesforce has also integrated AI directly into customer clouds, thus protecting itself against AI disruption as clients find it harder to switch to competitors without losing integrated data. Over 80% of Salesforce shares are owned by institutional investors, indicating that the firm is viewed by many as a bridge between traditional software and the new AI economy.
2. Lam Research Corporation (NASDAQ:LRCX)
Bridgewater Associates’ Stake: $521 Million
Lam Research Corporation (NASDAQ:LRCX) is a relatively recent addition to the 13F portfolio of Bridgewater Associates. At the end of 2024, the fund opened a new position in the company, disclosing it held around 2.5 million shares. In the coming quarters, this holding was reduced down to 1.6 million shares by the middle of 2025. However, Dalio then started buying up the stock again, increasing the stake by 111% in the third quarter of 2025. Filings for the fourth quarter of 2025 show that the fund owns just a little over 3 million shares in the firm, down 12% from the stake disclosed in the previous quarter.
READ MORE: 15 Stocks That Will Make You Rich in 10 Years.
Lam Research Corporation (NASDAQ:LRCX) features in the 13F portfolio of elite hedge funds because of a number of reasons, the chief among them being the importance of the firm to the AI supercycle. Lam has a dominant position in etch and deposition technologies. The firm is also what some analysts have termed is the AI manufacturer oligopoly, alongside names like ASML and Applied Materials. Whoever wins the chip war is ultimately coming to Lam for equipment needed to produce them. This is viewed as a lower risk play for the AI boom. Lam is also a critical enabler in the HBM production process, supplying crucial tools used by leading memory makers for 3D stacking and advanced packaging.
1. NVIDIA Corporation (NASDAQ:NVDA)
Bridgewater Associates’ Stake: $721 Million
NVIDIA Corporation (NASDAQ:NVDA) is one of the most enduring positions in the 13F portfolio of Bridgewater Associates over the past decade and a half. Since 2011, the fund has owned a stake in the AI infrastructure company. In the fourth quarter of 2012, when little was known about the computing powerhouse, Bridgewater owned over 45 million shares in the company. However, this holding was trimmed significantly in the coming years as the share price skyrocketed. Filings for the fourth quarter of 2025 show that the fund owns a little under 4 million shares in NVIDIA, adding 54% to the stake disclosed in the third quarter of 2025.
NVIDIA Corporation (NASDAQ:NVDA) features in the 13F portfolio of many top hedge funds because of a number of factors. The company has high profit margins, some of the best earnings growth numbers, and is undoubtedly the hottest AI stocks on the market. Hedge funds have also been tracking the capital expenditures of tech giants like Microsoft, Meta, and Alphabet. As long as these giants keep spending billions on data centers, NVIDIA remains the primary beneficiary. Funds thus view NVDA as a direct proxy for the global build-out of AI infrastructure. Even during volatile periods, hedge funds have held onto NVIDIA stock, signalling confidence in the ability of the firm to weather short-term market fluctuations.
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about the cheapest AI stock.
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