Billionaire Dan Loeb’s Top 5 AI Stock Picks

In this article, we will discuss Billionaire Dan Loeb’s Top 5 AI Stock Picks. Please visit Billionaire Dan Loeb Sells Old Economy Stocks, Buys 7 AI Stocks, if you would like to see the extended list and the methodology behind it.

Dan Loeb of Third Point

5. KLA Corp. (NASDAQ:KLAC)

Billionaire Dan Loeb’s Stake: 110,000 Shares Valued at Approximately $16.20 Million (NEW position)

KLA Corp. (NASDAQ:KLAC) plays a key role in the AI revolution because it makes the machines used to inspect and measure semiconductor chips during manufacturing — essentially the quality control layer of every major fab on the planet. It holds a 58% global market share in process control, meaning most of the world’s chip manufacturers rely on KLA equipment to ensure their chips come out correctly.

KLA Corp. (NASDAQ:KLAC) sits at the center of every major semiconductor tailwind right now. As chip geometries shrink down to 2nm, the inspection and metrology requirements become exponentially more demanding — older machines simply can’t detect flaws at that level of precision, which forces chipmakers to upgrade their KLA equipment with every new node generation. Hyperscalers are projected to spend over $725 billion on AI infrastructure in 2026 alone, which flows directly into chip manufacturing demand, which flows directly into KLA.

KLA Corp. (NASDAQ:KLAC) targets $26 billion in revenue by 2030, representing a 13–17% revenue CAGR, alongside gross margin expansion to 63.5%. EPS is expected to grow around 34% in FY2027, outpacing peers like Applied Materials and Entegris on both volume and growth rate.

Aristotle Growth Equity Fund stated the following regarding KLA Corporation (NASDAQ:KLAC) in its fourth quarter 2025 investor letter:

“KLA Corporation (NASDAQ:KLAC) contributed to performance in the fourth quarter as leading-edge logic and memory customers accelerated capital spending to support advanced-node transitions. The company is benefiting from increased adoption of advanced packaging and extreme ultraviolet-related (EUV) inspection, where KLA maintains a technology leadership position, and investors continued to increase estimates for semiconductor capital equipment spending growth in 2026 and 2027 from prior consensus.”