Hedge Funds Flock to Top Cloud Computing Stocks Amid AI Buildout

The latest Form 13-Fs have been released, providing insight into the investment strategies of top hedge funds. Among the most popular buys during Q2 were Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), and Taiwan Semiconductor (NYSE: TSM). These stocks are all poised to benefit from the growing demand for cloud computing and artificial intelligence.

Amazon's major data center capital expenditure investments have started paying off, with 37% year-over-year growth in Amazon Web Services (AWS) reported in Q2. Alphabet's Google Cloud revenue soared 82% during the same period, driven by increased computing capacity.

Taiwan Semiconductor is a key beneficiary of the AI buildout, as it supplies the vast majority of chips used by AI computing units. Its technology and manufacturing processes are second to none, making it the go-to partner for companies looking to produce high-performance chips.