In this article, we will discuss: Ray Dalio Stock Portfolio: 10 Best Stocks to Buy.
On June 3, Bloomberg reported that billionaire investor Ray Dalio believes the artificial intelligence market is a bubble that will eventually burst as investors seek to turn their capital into cash. Dalio told Bloomberg Television’s Dani Burger that “all great technology changes produce bubbles” and that companies must either spend heavily to win market share or risk falling behind. He also stated that the timing of a bubble’s collapse is determined by recognizing “the pricking,” not the bubble itself.
Dalio believes that when investors begin to convert wealth into money, it raises concerns about the profitability of AI investments. “The pricking is the converting of wealth into money,” he said, and today’s AI-driven market “is following that kind of path, even though it is a wonderful technology.” According to Bloomberg, demand for AI chips has sparked debate about whether investor enthusiasm has surpassed underlying fundamentals, even though firms are investing extensively in AI infrastructure.
With that said, here is Ray Dalio Stock Portfolio: 10 Best Stocks to Buy.
Ray Dalio of Bridgewater Associates
Methodology:
To curate our list of Ray Dalio’s 10 best stocks, we scanned Bridgewater Associates’s Q1 2026 13F filings, using Insider Monkey’s 13F database. We have limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. The stocks are ranked in ascending order of Bridgewater Associates’ stake value.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Bridgewater Associates’ Stake Value: $262,987,591
On July 6, Advanced Micro Devices, Inc. (NASDAQ:AMD) shares rose 6.6% to $551.98 after Goldman Sachs raised its price target to $640 from $450. The firm reiterated a Buy rating. The analyst noted expectations for strong second-quarter earnings with solid guidance as well as sustained AI demand. The firm said the new target still implies about 16% upside despite the stock’s gain of more than 300% over the past year.
Analyst James Schneider wrote, “We see a constructive setup heading into the quarter driven by CPU demand for agentic AI and AI infrastructure spending.” He said Goldman expects AMD to report strong second-quarter earnings in August. Schneider also noted, “Comments on new customer engagement should drive 2027 data center estimates and the stock higher,” pointing to partnerships with Meta Platforms and OpenAI. He called Advanced Micro Devices, Inc. (NASDAQ:AMD)’s Advancing AI event on July 22-23 a “positive catalyst” and said the company will likely present a constructive outlook for server CPU demand.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading semiconductor company working in high-performance computing and graphics solutions.
9. Lam Research Corporation (NASDAQ:LRCX)
Bridgewater Associates’ Stake Value: $335,708,788
Lam Research Corporation (NASDAQ:LRCX) is among the Ray Dalio Stock Portfolio.
On July 9, Mizuho raised its price target on Lam Research Corporation (NASDAQ:LRCX) to $400 from $380. The firm maintained an Outperform rating on the stock. In an investor note, the analyst said AI demand helps durable wafer fab equipment spending through 2027-2029.
The firm said AI is driving leading-edge foundry, logic, and DRAM demand. NAND sees upgrade tailwinds and sees that it is raising price targets in the space. Mizuho said AI demand supports “durable ramps” for leading-edge logic and memory.
Separately, on June 30, Susquehanna analyst Mehdi Hosseini raised his price target on Lam Research Corporation (NASDAQ:LRCX) to $475 from $385. The analyst reiterated a Positive rating after channel checks suggested an upward revision to SCE backlog, now extending beyond one year. The firm said wafer fab equipment spending could reach $300 billion, raising its 2026 and 2027 estimates. It is introducing 2028 projections based on $250 billion in WFE. Susquehanna said its higher estimates show stronger backlog trends identified through its channel checks.
Lam Research Corporation (NASDAQ:LRCX) designs, manufactures, markets, and provides semiconductor processing equipment used in the fabrication of integrated circuits. It functions through the United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan segments.
8. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Bridgewater Associates’ Stake Value: $363,998,848
On June 4, WSJ reported that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) Chief Executive C.C. Wei told shareholders the company is not losing its edge in next-generation chip manufacturing.
He said the firm has already purchased ASML’s High-NA EUV lithography machines and is conducting research and development before placing them in high-volume production. “The fact is, we have already purchased that equipment… It is simply not yet being deployed for volume mass production,” Wei said, declining to disclose how many systems TSMC has acquired.
Wei said Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is prioritizing manufacturing economics. It focuses on improving machine efficiency to reduce costs before introducing the equipment into everyday production. He also commented that the firm will place the systems only when doing so becomes financially profitable.
The Wall Street Journal said rivals such as Intel have started using the technology, whose machines can cost up to $400 million each. Wei’s remarks follow comments from TSMC executive Kevin Zhang, who said in April that many current manufacturing goals remain achievable with standard EUV tools because the newer equipment is “very expensive.”
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells integrated circuits and wafer-based semiconductor devices.
7. GE Vernova Inc. (NYSE:GEV)
Bridgewater Associates’ Stake Value: $379,621,591
GE Vernova Inc. (NYSE:GEV) is among the Ray Dalio Stock Portfolio.
On July 7, Barron’s said GE Vernova Inc. (NYSE:GEV) fell 6.5% Tuesday. Caterpillar and Cummins dropped 3.1% and 2.7%, respectively. This happened after Barclays downgraded German rival Siemens Energy to Sell from Hold, per FactSet. Siemens Energy slid 8.9% in overseas trading.
Barron’s said neither GE Vernova Inc. (NYSE:GEV) nor Cummins released company-specific updates, and Caterpillar’s acquisition of mining services provider Skycatch did not explain the broader selloff.
Barron’s said AI-driven demand has sparked valuations for power equipment makers. Barclays described the cycle as “exceptionally strong” while warning orders could eventually peak and weaken investor enthusiasm.
The report said GE Vernova Inc. (NYSE:GEV) and Siemens Energy traded at roughly 40 and 28 times forward earnings after strong share gains.
Despite Tuesday’s drop, Barron’s noted Wall Street remains constructive. Nearly 76% of analysts rate GE Vernova Inc. (NYSE:GEV) a Buy. Around 70% assign the same rating to Siemens Energy.
GE Vernova Inc. (NYSE:GEV) works in the electric power industry. It functions through Power, Wind, and Electrification segments.
6. Microsoft Corporation (NASDAQ:MSFT)
Bridgewater Associates’ Stake Value: $401,626,676
On July 6, Reuters reported that Microsoft Corporation (NASDAQ:MSFT) said it will cut 4,800 jobs, or about 2.1% of its global workforce. It is restructuring its Xbox business with 3,200 gaming-related layoffs and the divestment of up to five studios.
Reuters said the move follows years of heavy investment in gaming, including the Activision Blizzard acquisition. The tech giant moves toward distributing games across more platforms instead of relying on console exclusives.
Chief People Officer Amy Coleman told employees, “The roles eliminated today are not being replaced by AI,” and that “AI is changing how work gets done.”
Equisights Research CEO Parth Talsania said the cuts reflected portfolio reallocation and operating discipline rather than a new catalyst for the stock. On the other hand, D.A. Davidson Managing Director Gil Luria said Microsoft Corporation (NASDAQ:MSFT) has reduced headcount to fund AI investments while maintaining margins.
Reuters said the company projected $190 billion in 2026 spending, mainly due to AI infrastructure.
Microsoft Corporation (NASDAQ:MSFT) creates and supports software, services, devices, and solutions. Its business is divided into productivity and business processes, intelligent cloud, and more personal computing segments.
While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about the cheapest AI stock.
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