Forget Nvidia: Billionaire Daniel Loeb Owns $2.2 Billion Worth of These 3 Artificial Intelligence (AI) Stocks Instead
When it comes to investing in artificial intelligence (AI), one stock that is absolutely hard to ignore is Nvidia (NASDAQ: NVDA). The company almost single-handedly kicked off the AI revolution by developing the graphics processing units (GPUs) that make AI possible. The results of Nvidia's fiscal 2024 (ended Jan. 28) help illustrate its uncontested success. Revenue of $61 billion soared 126% year over year, while its diluted earnings per share (EPS) of $11.93 surged 586%.
I have no doubts that Nvidia will continue to succeed, but others have doubts. The potential for cyclicality in the chip industry, a frothy valuation, and rising fears of competition have some investors looking for viable alternatives, and following the example of a successful money manager might provide ideas.
Billionaire Daniel Loeb made his bones as the CEO of Third Point, the hedge fund he founded in 1995. From seed capital of just $3.4 million, Loeb spun that into a financial empire worth $6.6 billion. He's made no secret about his feelings regarding AI, which he views as "transformational," and believes a "profound economic upheaval" is under way. While there are many stocks that will reap the benefits of generative AI, a quick look at Third Point's holdings reveals three that have the Loeb seal of approval -- and none of them are named Nvidia.
Source Fool.com
