In this article, we will look at the 9 Best AI Stocks to Buy According to Billionaire Stanley Druckenmiller.
Stanley Druckenmiller, one of the most revered investors on Wall Street, has often quashed concerns that the artificial intelligence boom is overhyped. The founder and former chairman of Duquesne Capital was an early investor in artificial intelligence and capitalized on stocks with exposure to the burgeoning technology as it exploded.
In an Interview with CNBC, Druckenmiller is on record comparing the internet to the current AI revolution. The fact that the internet has grown significantly over the past 20 years underscores the tremendous potential for AI, affirming why investors should play a long-term game, according to the billionaire investor.
While maintaining that “AI might be a little overhyped now but under-hyped in the long term,” the legendary investor has significant exposure to AI, given the diversified nature of Duquesne Capital. Druckenmiller has been aggressive in buying and offloading stakes in AI plays. That was evident, as Duquesne Capital boasts an average holding time of less than seven months for its holdings.
Despite locking in profits in some Big AI plays, Druckenmiller has been building stakes in new plays. As AI gains broader applications beyond common names, Druckenmiller’s portfolio already signals where investors should be looking. The legendary investor has loaded up on stocks across various sectors that he believes are well-positioned to benefit from the long-term AI boom.
Stanley Druckenmiller of Duquesne Capital
Our Methodology
To compile the list of 9 Best AI Stocks to Buy According to Billionaire Stanley Druckenmiller, we scanned Duquesne Capital’s Q1 2025 13F filings. We settled on stocks with significant exposure to artificial intelligence and data centers. Additionally, we’ve also added overall hedge fund sentiment for each stock as of Q1 2025. Finally we ranked the stocks in ascending order based on Duquesne Capital’s equity stake.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best AI Stocks to Buy According to Billionaire Stanley Druckenmiller
9. Tesla, Inc. (NASDAQ:TSLA)
Duquesne Capital Equity Stake: $4.88 Million
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one of the best AI stocks to buy, according to billionaire Stanley Druckenmiller. On July 24, TD Cowen analyst Itay Michaeli reiterated a ‘Buy’ rating on the stock and a $374 price target.
The bullish stance comes as the analyst reiterates that the recent dip pullback has tilted the stock’s risk/reward favorably amid emerging new catalysts. The electric vehicle giant has already announced it has started building its more affordable model, with volume production planned for the second half of the year.
The company plans to ramp up production of the affordable model, having suffered a major blow with the signing into law of the One Big Beautiful bill Act. With the new bill, there will no longer be a $7,500 tax credit that was the catalyst behind Tesla ramping up sales of its high-end models. To mitigate the expiration of the tax credits, Tesla has also confirmed plans to ramp up production of its purpose-built robotaxi, starting in 2026.
Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, sells, and leases electric vehicles, as well as energy generation and storage systems. It also leverages artificial intelligence technology to train cars to drive themselves and create useful humanoid robots.
8. AppLovin Corporation (NASDAQ:APP)
Duquesne Capital Equity Stake: $10.65 Million
Number of Hedge Fund Holders: 96
AppLovin Corporation (NASDAQ:APP) is one of the best AI stocks to buy, according to billionaire Stanley Druckenmiller. On July 1, AppLovin Corporation announced the successful sale of its mobile gaming subsidiaries to Tripledot Group Holdings and its affiliates, with the deal officially closing on June 30, 2025.
The sale included $400 million in cash—paid directly after a last-minute agreement change—as well as Tripledot shares representing around 20% of its fully diluted equity. AppLovin subsidiaries Morocco, Inc. and AppLovin GmbH were part of the transaction, with Tripledot, Eton Games, and Tripledot Group Holdings listed as purchasers. The deal reinforces AppLovin’s strategic shift, as the company, headquartered in Palo Alto and listed on Nasdaq under APP, continues to focus on its core software business.
AppLovin Corporation (NASDAQ:APP) is a technology company that develops software to help businesses connect with their ideal customers and grow their audience. It provides solutions for mobile app marketing, monetization, and analytics. It also leverages AI to power its advertising and app monetization platform.
7. Seagate Technology Holdings plc (NASDAQ:STX)
Duquesne Capital Equity Stake: $18.65 Million
Number of Hedge Fund Holders: 55
Seagate Technology Holdings PLC (NASDAQ:STX) is one of the best AI stocks to buy, according to billionaire Stanley Druckenmiller. On July 10, Mizuho increased its price target for Seagate Technology (NASDAQ:STX) from $130 to $155 while keeping its “Outperform” rating.
The move reflects confidence in the company’s performance, with unchanged estimates of $2.40 billion in revenue and $2.40 in EPS for the June quarter, matching consensus expectations. Seagate’s strong trailing twelve-month revenue of $8.54 billion and 36.29% growth further justify the bullish outlook. Mizuho also raised forecasts for fiscal 2026 and 2027, projecting higher revenue and EPS than earlier estimates and consensus projections.
The firm highlighted Seagate’s cutting-edge HAMR technology, which is enhancing profit margins and meeting strong demand from major cloud providers. With production expanding to more customers in the coming year and a solid gross profit margin of 33.79%, Seagate remains a key player in the data storage sector.
Seagate Technology Holdings PLC (NASDAQ:STX) is a company that develops, manufactures, and sells data storage solutions, including hard disk drives (HDDs) and solid-state drives (SSDs), for enterprise and consumer markets.
6. Amazon.com, Inc. (NASDAQ:AMZN)
Duquesne Capital Equity Stake: $26.02 Million
Number of Hedge Fund Holders: 328
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best AI stocks to buy, according to billionaire Stanley Druckenmiller. On July 23, the company announced it is shutting down its Shanghai artificial intelligence lab. The lab was established by its cloud services unit in 2018.
The shutdown comes on the heels of reports that the company has cut hundreds of jobs in Amazon Web Services. The cuts and shutdown follow warnings by the company’s chief executive officer, Andy Jassy, of workforce reduction due to the adoption of generative AI tools.
On the other hand, the shutdown of the Shanghai artificial intelligence lab comes amid heightened tensions between Beijing and Washington. The US has heightened scrutiny on companies operating in China.
Amazon.com, Inc. (NASDAQ:AMZN) is a technology giant that is increasingly investing in AI and integrating the technology to enhance its core business, which revolves around e-commerce, cloud computing, and advertising. It employs AI for personalized product recommendations, automated data extraction, and improved customer service through tools like Alexa.
5. Twilio Inc. (NYSE:TWLO)
Duquesne Capital Equity Stake: $35.46 Million
Number of Hedge Fund Holders: 73
Twilio Inc. (NYSE:TWLO) is one of the best AI stocks to buy, according to billionaire Stanley Druckenmiller. On July 18, JMP Securities reiterated a ‘Market Outperform’ rating on the stock and a $165 price target. The positive stance on the stock is reflected in its strong momentum, delivering a 119% return over the past year.
According to JMP Securities, the generation of voice technology-powered LLMs is a positive development for the company, following previous false starts. The research firm also touted positive trends as Six Twilio salespeople exceeded their expected attainment this year, affirming demand for the company’s solutions. Four salespeople met their sales targets in the first half of the year, with the largest beat coming from an executive account in the EMEA region.
In addition, Twilio has launched three new features as it seeks to enhance its customer engagement solution. Event Triggered Journeys, Data Residency for Email (EU), and WhatsApp Business Calling on Programmable Voice are three new features designed to improve real-time customer interaction and data management.
Twilio Inc. (NYSE:TWLO) is a cloud communications company that provides programmable APIs for developers to integrate various communication channels, including voice, messaging, video, and authentication, into their applications. It leverages AI to enhance its customer engagement platform, focusing on improving personalization, automation, and insights across various communication channels.
4. DocuSign Inc. (NASDAQ:DOCU)
Duquesne Capital Equity Stake: $87.48 Million
Number of Hedge Fund Holders: 41
DocuSign Inc. (NASDAQ:DOC) is one of the best AI stocks to buy, according to billionaire Stanley Druckenmiller. On July 17, the company confirmed a strategic partnership with Coveo for the integration of AI search and answering capabilities to enhance customer support operations.
Under the terms of the agreement, DocuSign is to utilize Coveo’s AI Search and Relevance Generative Answering Technologies to enhance self-service success rates and streamline workflows across various support channels.
“As customer expectations for self-service and AI-powered support continue to rise, Docusign is taking a forward-thinking approach by investing in AI relevance,” said John Grosshans, COO at Coveo.
Successful integration should reduce the time customers and support agents spend searching for information, while also addressing customer queries effectively. That’s because Coveo’s technology is designed to enhance case deflection by leveraging automated answers to common queries.
DocuSign Inc. (NASDAQ:DOC) provides an electronic signature and digital transaction management platform that enables businesses to prepare, sign, act on, and manage agreements electronically. It also utilizes AI through its DocuSign Iris engine to enhance its Intelligent Agreement Management (IAM) platform.
3. Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)
Duquesne Capital Equity Stake: $99.39 Million
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is one of the best AI stocks to buy, according to billionaire Stanley Druckenmiller. On July 18, Central Taiwan Science Park Administration Office Director-General Hsu Maw-shin confirmed that the company plans to start construction of four new 1.4-nanometer plants.
The giant chip manufacturing company will use the plants to enhance the production of 2-nanometer semiconductor wafers by late 2028. Taiwan Semiconductor has already leased the land with the Central Taiwan Science Park, handing over the plot for the facilities.
The four plants in the Central Taiwan Science Park will come with four 1.4-nanometer wafer manufacturing facilities. The first plant is expected to be ready for risk assessment for wafer production in 2027 and commence mass production in 2028.
The proposed new manufacturing facilities in Taiwan come against the backdrop of TSMC revealing plans to launch its A-14 fabrication process in 2028. The company has also announced a $165 billion investment in the US as it looks to maintain its dominance in next-generation chip manufacturing.
Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is a crucial player in the AI landscape as the world’s largest contract chip manufacturer. It manufactures advanced processors for companies like Nvidia and Apple, making it essential for AI chip development.
2. Coherent Corp. (NYSE:COHR)
Duquesne Capital Equity Stake: $144.30 Million
Number of Hedge Fund Holders: 61
Coherent Corp. (NYSE:COHR) is one of the best AI stocks to buy, according to billionaire Stanley Druckenmiller. On July 17, analysts at Benchmark reiterated a Buy rating on the stock. The positive stance comes amid expectations that the company is well-positioned to capitalize on strong growth in the artificial intelligence and data center sectors.
Benchmark cited the tremendous opportunity at hand as major hyperscale capital expenditure is poised to increase 40% year over year to about $322 million in 2025. With AI and data center remaining primary growth drivers Coherent should be one of the beneficiaries.
In addition, the research firm expects the continued strength in data center sales to support Coherent’s business performance and strengthen its revenue base. The company should also capitalize on the expansion in AI infrastructure segments throughout the year.
Coherent Corp. (NYSE:COHR) develops and manufactures materials, networking products, and lasers for various industries. It provides components and solutions for data centers, with a focus on AI and high-speed networking. Its key products include optical transceivers, lasers, and thermal management solutions.
1. Woodward, Inc. (NASDAQ:WWD)
Duquesne Capital Equity Stake: $200.33 Million
Number of Hedge Fund Holders: 45
Woodward, Inc. (NASDAQ:WWD) is one of the best AI stocks to buy according to billionaire Stanley Druckenmiller. On July 22, the company confirmed the acquisition of Safran’s electromechanical actuation business.
With the acquisition, the company gains access to crucial intellectual property and long-term customer agreements related to Horizontal Stabilizer Trim Actuation (HSTA) systems. The systems play a crucial role in aircraft stabilization, ensuring safe and efficient flight operations.
The acquisition is poised to expand Woodward’s electromechanical actuation portfolio and become a key component of the company’s aerospace growth strategy. The acquisition comes as the company’s industrial segment is increasingly benefiting from rising power generation needed for artificial intelligence data centers.
Woodward, Inc. (NASDAQ:WWD) designs and manufactures energy conversion and control solutions. Its solutions are used in the aerospace and industrial markets, including power generation and renewable energy systems. As an energy conversion and control solutions powerhouse, it’s benefiting from the soaring demand for artificial intelligence data centers.
While we acknowledge the potential of WWD 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 WWD and that has 100x upside potential, check out our report about this cheapest AI stock.
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