Billionaires Are Buying These 3 Unstoppable AI Stocks Shaping the Future of Technology

Key Points

• Nvidia's GPUs are powering the AI arms race -- and that has sent the stock soaring.

• Taiwan Semiconductor makes chips for nearly every successful hardware company.

• Amazon Web Services is seeing strong demand for AI computing capacity.

• 10 stocks we like better than Nvidia ›

Following what billionaire hedge fund managers do is possible thanks to the requirement to file a Form 13F every quarter when a fund reaches $100 million or more in assets. Fund managers are required to disclose what securities they hold at the end of each quarter, and then that information is released to the public 45 days later. Although it's far from real time, it allows investors to see where billionaires are seeing opportunities in the market.

Some of the more popular artificial intelligence stocks that were bought during the second quarter were Nvidia (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing (NYSE: TSM), and Amazon (NASDAQ: AMZN). I still think these three are fantastic buys now, as they're shaping the future of how AI is used.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

Nvidia

Nvidia has been at the top of the AI investing world since its inception, as its graphics processing units (GPUs) are best in class. It has been an incredible performer over the past few years, but that hasn't stopped billionaires from buying more Nvidia stock.

David Tepper's Appaloosa investment firm increased its Nvidia position by nearly 500% in Q2, and it now makes up 4.3% of its portfolio. Daniel Loeb from Third Point also made a significant move, increasing its Nvidia position by 93%. This fund owned zero Nvidia shares at the start of 2025. Now, Nvidia makes up 5.9% of its portfolio with nearly half a billion dollars invested in the company. Clearly, they're quite bullish on the stock.

Nvidia projects that the AI hyperscalers will spend about $600 billion on data center capital expenditures this year. With the company projected to generate about $206 billion in revenue this year, it's safe to say that it gets about a third of all data center spending. However, that figure is expected to skyrocket by 2030, with Nvidia estimating that $3 trillion to $4 trillion will be spent on global data center capital expenditures by 2030.

Should Nvidia capture a similar amount of revenue, it would be a massive winner over the next five years. With several billionaires seeing the writing on the wall and taking significant positions in Nvidia's stock, I think investors would be smart to follow their lead.

Taiwan Semiconductor Manufacturing

Taiwan Semiconductor is an extremely popular AI stock based on its position in the industry. It's by far the leading chip foundry, and nearly every company that's making AI computing hardware is utilizing its chips, including Nvidia. This has caused it to become a popular investment among billionaires, with Stanley Druckenmiller devoting 4.4% of his fund to the stock. David Tepper's Appaloosa fund has a slightly smaller position size of 3.6%, but he massively increased its stake by 280% during the quarter.

Should Nvidia's market projection pan out, Taiwan Semiconductor will be well positioned to profit from this massive AI spending spree. The company has cemented itself at the top of the industry with leading technology, which Nvidia CEO Jensen Huang has described as "magic."

As long as there is demand for more advanced computing power, this will be a smart investment. That seems like a safe bet, making Taiwan Semiconductor stock a no-brainer buy today.

Amazon

Amazon may not be the first company you think about when AI is discussed. Its e-commerce platform is likely the first thing that comes to mind, but it's not what pays the bills. Instead, Amazon's cloud computing wing, Amazon Web Services (AWS), is the biggest profit driver for the company. In Q2, AWS made up 53% of Amazon's operating profits despite only generating 18% of total revenue.

Cloud computing is a massive beneficiary of the AI arms race, as many companies can't afford to build a massive AI-focused data center. Instead, they rent out computing power from a cloud computing provider like AWS and run AI workloads on its servers. This is a massive growth trend for AWS and other cloud computing players, and it's no wonder that billionaires are taking a larger stake in the stock.

Both Daniel Loeb of Third Point and David Tepper of Appaloosa purchased shares of Amazon in Q2. Amazon is Third Point's second-largest position, making up nearly 8% of total portfolio value. Amazon is Appaloosa's third-largest holding, but it makes up a larger percentage at 9.2% of portfolio value.

All three of these stocks are popular among billionaires, and I think investors should follow their lead and scoop up shares of these impressive businesses.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $649,280!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,084,802!*

Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 189% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 22, 2025

Keithen Drury has positions in Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.