In this article, we will discuss the 5 Top Stock Picks of 10 Famous Billionaires. Please visit 10 Top Stock Picks of 10 Famous Billionaires if you would like to see the extended list and the methodology behind it.
5. Vistra (NYSE:VST)
Number of Hedge Funds: 106
Top Pick Of: Stephen Mandel — Lone Pine Capital
Vistra (NYSE:VST) is another AI stock billionaires can not get enough of. As demand for AI data centers grows, so does the need for power. Vistra is a power producer sitting right in the middle of that trend.
The company expects electricity demand in ERCOT, the grid covering most of Texas, to grow 5% to 6%. In PJM, the largest wholesale electricity market in the U.S., it expects growth of 2% to 3%. Both figures are well above historical norms.
It has a total generation capacity of about 44 GW. Roughly 62% comes from natural gas, about 15% from nuclear, and the rest from coal and renewables. Its nuclear fleet is the second largest in the U.S.
Companies are lining up to lock in long-term supply. Meta signed a roughly 2.6 GW, 20-year nuclear power purchase agreement with Vistra. Amazon signed a roughly 1.2 GW, 20-year nuclear PPA as well.
Another key differentiator is bridge power. Vistra uses gas-fired plants located near data centers to supply temporary electricity when grid connections are delayed. That allows data centers to come online faster and makes Vistra more flexible than traditional utilities that rely on slower grid infrastructure.
Brown Advisory Mid-Cap Growth Strategy stated the following regarding Vistra Corp. (NYSE:VST) in its fourth quarter 2025 investor letter:
“Vistra Corp. (NYSE:VST): Operates as a retail electricity and power generation company. Vistra (VST) benefited from rising power demand in Texas, increased interest from data center customers in directly sourcing generation, and growing investor appreciation for nuclear assets. During the year, the company signed a large power purchase agreement with a major hyperscaler for its Comanche Peak nuclear facility in Texas, and we see the potential for additional large deals in the future.”
4. Apple (NASDAQ:AAPL)
Number of Hedge Funds: 170
Top Pick Of: Warren Buffett’s Berkshire Hathaway
Net Worth: ~$130B+ (Warren Buffett)
Apple was once seen as a laggard in the AI race. Now it is looking like a winner, and without breaking the bank on capex. Apple’s capex-to-revenue ratio stands at just 2.5%, well below the 10%-plus seen at most mega-cap peers. As competitors burn through cash on AI infrastructure and investors question whether those investments will generate returns, Apple is taking a different path.
The company plans to monetize AI through its massive existing customer base. Apple now has over 2.5 billion active devices, up from 2.35 billion a year ago, a gain of 150 million devices in one year. That installed base positions Apple to benefit from the shift toward agentic AI applications, where users need a trusted platform to manage identity, authentication, and payments. Few platforms can match Apple on that front.
The stock is not cheap. It trades at over 35x forward non-GAAP P/E, the highest in the Mag 7 except Tesla. That is roughly 30% above Microsoft and nearly double Meta. Its forward PEG ratio stands at 3.1x, compared to 0.57x for Nvidia and 0.90x for Meta.
Risks remain. Siri still has limitations in intent understanding and AI integration. Devices may also need stronger compute capabilities, including better memory, bandwidth, and neural processing power, before Apple can fully deliver on the AI endpoint opportunity.
RiverPark Large Growth Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its fourth quarter 2025 investor letter:
“Apple Inc. (NASDAQ:AAPL): AAPL shares rose in 4Q25 following better-than-feared iPhone 17 sell-through trends and stronger Services momentum. The company reported that early adoption of its on-device AI features exceeded internal expectations, particularly in North America and Europe, where attach rates for Pro models remained elevated. Wearables also returned to growth, helped by new health features and improved battery life. While macro softness in China remained a headwind, investors responded positively to evidence of content and advertising revenue re-acceleration within the Services segment, which delivered double-digit growth.
We continue to view Apple as one of the world’s most resilient and profitable businesses, supported by a massive installed base, ecosystem lock-in, and growing high-margin revenue streams. As Apple Intelligence features proliferate across devices, we expect multi-year upgrades, improved monetization, and expanded recurring revenue. With strong cash generation, ongoing share repurchases, and disciplined capital allocation, Apple remains a compelling long term investment.”
3. Taiwan Semiconductor (NYSE:TSM)
Number of Hedge Funds: 234
Top Pick Of: Philippe Laffont — Coatue Management
Taiwan Semiconductor (NYSE:TSM) is the biggest holding of billionaire Philippe Laffont of Coatue Management.
Taiwan Semiconductor (NYSE:TSM) is a direct beneficiary of the AI boom. It controls about 62% of the total foundry market and more than 90% of advanced nodes at 7nm and below. Advanced nodes matter because the smallest, most powerful chips used in AI workloads can only be manufactured at these process sizes. Customers cannot switch because no other foundry can match TSMC’s scale or technical capability at these levels. The client list tells the story. Apple, Nvidia, AMD, Qualcomm, Broadcom, MediaTek, and Marvell all rely on TSMC for production.
The financials back up the dominance. In Q1, revenue rose 40.6% year over year to $35.9 billion. For the full year 2026, TSMC expects revenue growth of more than 30%. Gross margin reached 66.2% in Q1 and operating margin came in at 58.1%. These are the numbers of a company with real pricing power. To meet rising demand, TSMC is raising capital spending to between $52 billion and $56 billion in 2026, up about 32% year over year. Global AI accelerator spending is projected to grow from $116 billion in 2024 to $604 billion by 2033. TSMC is the dominant manufacturer sitting at the center of that buildout.
Eagle Point Capital stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2026 investor letter:
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is beloved by investors because it dominates the cutting edge of their industries. But the technology in its field is changing rapidly. It is unclear if it will be able to change with it. They must continuously disrupt and reinvent themselves before their competitors do. The odds are that eventually they’ll stumble. No one bats one thousand forever. History is littered with companies, like Intel, that looked dominant but could not adapt as their environment changed.
2. Alphabet (NASDAQ:GOOGL)
Number of Hedge Funds: 265
Top Pick Of: Chase Coleman — Tiger Global Management
Alphabet (NASDAQ:GOOGL) is the biggest holding of billionaire Chase Coleman’s Tiger Global.
What was once seen as a business at risk of being disrupted by AI has, instead, turned the tables.
In Q1, Google Search rose about 19%, showing that AI is not reducing usage but actually increasing engagement across queries. YouTube advertising revenue grew 11%, supported by better AI-driven targeting and improved ad relevance. Subscription products also continued to scale, benefiting from deeper integration of AI across Google’s ecosystem.
Google Cloud remains the biggest catalyst in the story. Revenue rose 63% in Q1, while operating margins expanded sharply as the business moved further into high-value enterprise workloads. The Cloud backlog came in at about $460 billion, giving strong visibility into future revenue. Alphabet (NASDAQ:GOOGL) custom TPU chips are also becoming a key advantage, supporting both cost efficiency and AI compute demand.
Gemini has reached approximately 750 million monthly active users in its standalone app, while its models power over 2 billion monthly users through Google Search AI Overviews and AI Mode. Paid adoption is also scaling, with more than 8 million enterprise seats across thousands of companies.
From a valuation perspective, the stock trades at roughly a mid-to-high 20s forward P/E (~26–28x). Earnings are expected to grow around high-20% to low-30% annually, driven by Search resilience, Cloud acceleration, and AI monetization across products.
L1 Capital International Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q1 2026 investor letter:
Portfolio adjustments during the March 2026 quarter were relatively modest, but deliberate. We trimmed investments in AerCap, Alphabet Inc. (NASDAQ:GOOGL), HCA Healthcare and Weir Group at prices around the top end of our assessed fair value range, with all of these businesses benefitting from positive sentiment intra-quarter. Alphabet’s share price has more than doubled over the past 12 months. This reflects strong performance in core Search, continued momentum in Google Cloud Platform, and better-than-expected progress in AI (Gemini). Today Alphabet has a market capitalisation approaching US$4 trillion. Share prices and fair value are not always aligned, even for the world’s largest companies.
1. Amazon.com (NASDAQ:AMZN)
Number of Hedge Funds: 353
Top Pick Of: Seth Klarman — Baupost Group
Amazon (NASDAQ:AMZN) remains one of the strongest beneficiaries of the AI cycle, primarily through AWS. The shift toward AI applications, especially large-scale inference and AI agents, is structurally increasing demand for cloud infrastructure, where AWS holds a leading global market share.
AWS has built a massive backlog of approximately $464 billion, including about $138 billion from OpenAI and $100 billion from Anthropic, highlighting multi-year contracted demand and reinforcing AWS’s role as core infrastructure for the AI ecosystem. This level of backlog signals not just near-term growth, but a long-duration demand cycle tied to enterprise AI adoption.
AWS currently represents only about 20% of Amazon’s (NASDAQ:AMZN) total revenue, yet contributes roughly 60% of operating income, showing a sharp profitability concentration in the cloud segment versus the lower-margin retail business.
AWS revenue has also reached an annualized run rate of roughly $150–$155 billion, with recent growth of about 28% year-over-year, indicating re-acceleration rather than maturity slowdown.
According to a recent report by Semianalysis, AWS is seeing margin expansion versus competitors due in part to increased demand from Anthropic’s Claude workloads running on AWS Bedrock. The report says AWS is the only major cloud provider showing a consistent rising margin trend, even as the broader industry struggles with profitability pressure.
Beyond cloud, Amazon.com’s (NASDAQ:AMZN) AI opportunity is expanding into chips and custom silicon. Amazon’s AI-related revenue run-rate is now over $15 billion annually, while its broader custom silicon business exceeds a $20 billion annual run-rate, reflecting strong growth in Graviton and other in-house chip programs.
Artisan Value Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2026 investor letter:
“We initiated four new positions in Q1, an above-average pace of activity. Typically, we add 1–2 new positions per quarter, averaging 1.7 per quarter over the past 5 years. Increased market volatility and greater dispersion in US equities created more opportunities to invest in companies that meet our three margin of safety criteria: attractive business economics, sound financial condition and compelling valuation. We also used the increased volatility to upgrade overall portfolio quality. Our three largest new positions were Amazon.com, Universal Music Group (UMG) and IQVIA Holdings.
Amazon.com, Inc. (NASDAQ:AMZN) represents a high-quality, wide-moat franchise where near-term investment is potentially obscuring substantial long-term earnings power. The company’s core retail platform is underpinned by its logistics network built over decades and enhanced by significant investment during COVID that doubled the network. This infrastructure continues to drive efficiency gains and customer value, reinforcing Amazon’s dominant market position. Complementing this is AWS, the original hyperscale cloud platform and a critical profit engine, contributing roughly 60% of operating income. AWS remains a leading cloud platform and a key profit driver, with strong positioning in AI supported by proprietary chips such as Graviton and Trainium. Despite elevated capital expenditures tied to AI, logistics and other growth initiatives, Amazon’s financial position remains exceptionally strong, with significant net cash and a well-laddered debt profile. Current earnings understate normalized profitability, in our view, due to heavy reinvestment across multiple initiatives, including AI infrastructure, robotics and new delivery capabilities. As these investments mature, we believe both revenue growth and margins should expand. At our initial purchase, the stock traded near historic valuation lows relative to its earnings power, offering an opportunity to own a premium, structurally advantaged business at a market-like multiple, with potential additional upside from its fast-growing, high-margin advertising segment.”
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.
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