Billionaire Bill Ackman Only Holds 1 Artificial Intelligence (AI) Stock, and It's Trading for an Absolute Bargain Right Now. Time to Buy?

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Billionaire Bill Ackman Only Holds 1 Artificial Intelligence (AI) Stock, and It's Trading for an Absolute Bargain Right Now. Time to Buy?

Billionaire Bill Ackman, CEO of Pershing Square Capital Management, holds only one AI stock: Alphabet. This choice stands out in a market where many hedge funds diversify across numerous companies. Ackman's confidence in Alphabet stems from its strong position in the AI sector and impressive financial growth.

Alphabet's revenue from advertising reached $264.6 billion in 2024, showcasing a robust demand for its platforms like Google and YouTube. The company's cloud computing segment, Google Cloud Platform, also saw a significant 30% revenue increase, indicating its potential as a major growth driver. With Alphabet's stock currently undervalued, it presents an attractive opportunity for growth investors.

• Ackman believes Alphabet has an underappreciated leadership in AI.

• Alphabet's cloud revenue growth indicates strong future potential.

Key AI Terms Mentioned in this Article

Artificial Intelligence (AI)

AI refers to the simulation of human intelligence in machines, which is central to Alphabet's business strategy.

Cloud Computing

Cloud computing allows for on-demand access to computing resources, which is crucial for Alphabet's Google Cloud Platform.

Large Language Models (LLMs)

LLMs are advanced AI systems that process and generate human-like text, impacting how users interact with search engines.

Companies Mentioned in this Article

Alphabet

Alphabet is a leader in AI development, leveraging its platforms to enhance user experience and advertising effectiveness.

Meta Platforms

Meta Platforms competes with Alphabet in the advertising space, particularly through its social media channels.

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