8 Stocks Bill Ackman and Jim Cramer Are Bullish On

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#3 Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 254

Meta Platforms, Inc. is among the artificial intelligence stocks that both Jim Cramer and Bill Ackman favor.

During an October 6 episode of Mad Money, Cramer named Meta and Microsoft as two of his preferred ways to invest in artificial intelligence. He argued that established technology companies with strong management teams and profitable existing businesses are better positioned to profit from AI than speculative companies whose future depends entirely on the technology.

Cramer expressed confidence in Meta CEO Mark Zuckerberg’s ability to turn the company’s AI investments into profitable new products and services.

Ackman’s Pershing Square Holdings reported approximately $1.49 billion in economic exposure to Meta as of September 30, equivalent to 11.2% of the fund’s net assets.

In his Q3 shareholder letter, Ackman highlighted Meta’s improving advertising business. Meta’s core advertising business grew revenue 26% in the third quarter from a year earlier, as AI-driven improvements in content recommendations and ad targeting lifted engagement and monetization.

Ackman also expressed optimism about Meta’s newly launched Muse personal AI agent and Meta Enterprise Platform. He believes these products could create additional revenue opportunities beyond the company’s core advertising business and help justify its large investment in computing infrastructure. Ackman points to Muse as Meta’s new way to earn money, and we looked at whether the AI agent can really help the stock. Check the full analysis here.

Although Meta’s valuation rose from 18 times to about 22 times forward earnings, Ackman still considers the stock undervalued.

Pershing Square expects Meta to generate annual earnings growth of 20% or more over the next several years, supported by its advertising business and emerging AI opportunities. Ackman first bought Meta after its third-quarter 2025 results, and we covered why he called the valuation cheap. Click to read the story.

#2 Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 273

Microsoft Corporation (NASDAQ:MSFT) is one of the strongest areas of agreement between Jim Cramer and Bill Ackman.

During a recent Mad Money episode, Cramer named Microsoft as one of his preferred AI investments, citing its established business model, leadership and ability to make money from artificial intelligence through existing products.

Cramer has repeatedly highlighted Microsoft’s enterprise customer relationships and growing adoption of AI products such as Copilot as advantages over smaller companies that are still trying to build profitable AI businesses.

Ackman’s confidence in Microsoft shows in the size of Pershing Square Holdings’ investment. As of September 30, 2026, the fund reported approximately $1.99 billion in economic exposure to Microsoft, making it the fund’s largest position at 15% of net assets.

In his third-quarter letter, Ackman highlighted faster growth across Microsoft’s cloud and productivity businesses. Microsoft 365 growth accelerated to 18%, and Azure growth accelerated to 48% in the most recent quarter. Growth in Azure’s commercial backlog came entirely from enterprise customers, which gives better visibility into lasting demand.

Microsoft can sell new AI tools faster than most rivals because its software already runs inside almost every large company, and we laid out the full bull case. Read the bull case here.

Ackman also praised Microsoft’s efforts to expand its AI capabilities through Copilot, its own AI models, custom Maia chips and new enterprise security products.

Microsoft shares rose sharply, and the stock’s forward earnings multiple climbed from 19 times to about 25 times. Even so, Pershing Square maintained that the stock remained undervalued. Ackman expects Microsoft to generate high-teens annual earnings growth over the long term as AI adoption expands across its software and cloud businesses.

Cramer said a slowdown in data center construction could help established cloud companies, and Microsoft ranks second among the five stocks he is bullish on. Click to see his full list.

#1 Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 369

Amazon.com, Inc. (NASDAQ:AMZN) tops our list of the best stocks to buy according to Bill Ackman and Jim Cramer.

Cramer recently recommended Amazon as a potential beneficiary of a slowdown in data center development. He argued that established cloud computing companies with extensive existing infrastructure could benefit as smaller competitors struggle with higher financing costs and delays in building new facilities.

Cramer also discussed the possibility of Amazon shares reaching $300, which would be nearly 10% above where they traded at the time.

Ackman’s Pershing Square Holdings reported approximately $1.48 billion in economic exposure to Amazon as of September 30, accounting for 11.2% of its net assets.

Billionaire Stanley Druckenmiller’s Duquesne Family Office raised its Amazon stake by 1,083% in the second quarter, and we looked at the risks from the company’s AI spending. Check the full analysis here.

In his Q3 shareholder letter, Ackman highlighted faster growth at Amazon Web Services, where revenue growth accelerated to 39% in the third quarter from a year earlier, its fastest pace in nearly five years. He also praised Amazon’s retail business, where paid units grew 12% from a year earlier, helped by rising e-commerce penetration and early adoption of agentic shopping.

Even with these results, Pershing Square believes investors put too much emphasis on Amazon’s huge capital spending plans. The company expected to spend approximately $220 billion on capital expenditures in 2026, and management said it expects to spend meaningfully more in 2027.

Pershing Square believes Amazon remains undervalued and can compound earnings at an annual rate above 20% over the long term. Amazon also ranks second in President Trump and Nancy Pelosi’s portfolio, and we covered what L1 Capital says about its AI spending and free cash flow. Read the full analysis here.

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