Billionaire Bill Ackman Has 30% of His Portfolio Invested in 2 Brilliant AI Stocks

Bill Ackman's Pershing Square Capital Management, which has significantly outperformed the S&P 500, has allocated 30% of its portfolio to two key AI-centric holdings: Amazon (9%) and Uber Technologies (21%). Amazon is strategically positioned for enhanced retail profitability through AI-driven cost savings and continued revenue growth in its dominant AWS cloud segment, alongside future expansion into autonomous ride-hailing via Zoox. Uber, leveraging its market leadership in ride-sharing and food delivery, is poised to capitalize on the autonomous vehicle market through extensive partnerships, making both companies compelling long-term growth investments due to their strong AI integration and strategic market positioning.

Analysis

Pershing Square Capital Management, a hedge fund with a notable record of outperforming the S&P 500 by 19 percentage points over the last five years, has concentrated 30% of its portfolio in two artificial intelligence-related stocks: Amazon (9% allocation) and Uber Technologies (21% allocation). This significant weighting signals high conviction. Amazon's investment case is built on a multi-faceted AI strategy, with Morgan Stanley estimating that AI-driven cost savings could increase retail operating margins by several percentage points. Concurrently, its Amazon Web Services (AWS) division, which holds a dominant 30% market share in cloud infrastructure, is positioned to capture substantial revenue from the growth in generative AI. Further long-term potential exists in its Zoox subsidiary, which plans to launch an autonomous ride-hailing service in 2025. With Wall Street forecasting 18% annual earnings growth and a track record of beating consensus estimates by an average of 22% over the last six quarters, its valuation of 35 times earnings is presented as reasonable. Uber represents a different AI play, leveraging its dominant 76% market share in U.S. ride-sharing to become a critical go-to-market partner for autonomous vehicle companies like Waymo and WeRide. This platform strategy positions Uber to capitalize on what its CEO calls a '$1 trillion opportunity' in autonomous mobility. Supported by a projected 26% annual earnings growth and a market forecast to expand 21% annually, its valuation at 16 times earnings appears comparatively inexpensive.

Key Decisions for Investors

• Investors should consider the concentrated, high-conviction stakes by a top-performing fund like Pershing Square as a strong bullish signal for both Amazon and Uber as long-term AI beneficiaries.
• For Amazon, monitor progress on AI-driven margin expansion in its retail operations and the growth of generative AI services on AWS, as these are the core catalysts supporting its current valuation.
• For Uber, the expansion and operational success of its autonomous vehicle partnerships are the primary indicators to watch, as they are key to achieving the forecasted 26% annual earnings growth.
• Given the provided metrics, investors may find Uber's valuation of 16 times earnings particularly attractive relative to its higher projected growth rate, compared to Amazon's 35 times earnings.