Amazon and Taiwan Semiconductor Top Billionaires' AI Stock Picks
The evolution of artificial intelligence has been one of the most significant trends in recent history. It's attracting investment capital at an unprecedented rate, and Wall Street's top billionaire money managers have taken notice.
According to Form 13Fs, the most successful billionaire fund managers have been buying and selling AI stocks. However, two standout favorites among these investors are Amazon (AMZN) and Taiwan Semiconductor Manufacturing (TSM).
Amazon, in particular, has seen impressive growth since integrating generative AI and large language model capabilities into its cloud infrastructure services platform, Amazon Web Services (AWS). The segment's 37% year-over-year growth is the highest it's been in 18 quarters.
The beauty of AWS lies in its higher margins compared to other Amazon operations. Despite accounting for less than 21% of net sales, this segment has generated 60% of the company's operating income.
TSMC, on the other hand, is a contract chip manufacturing giant that plays a crucial role in AI infrastructure. Hyperscalers rely on TSMC's CoWoS capacity to rapidly expand their AI-accelerated data centers.