Laffont is a firm believer in the artificial intelligence (AI) investment trend.
Nvidia and TSMC are expected to prosper due to increased data center spending in 2026.
All AI hyperscalers have strong core businesses to fund their AI developments.
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Checking out what billionaire hedge fund managers have in their portfolios can be a smart idea for investors. This information is published 45 days after the end of a quarter through a Form 13F. While this doesn’t provide up-to-date information on what these hedge fund managers are doing, it at least informs investors of some potential solid stock picks.
One billionaire I follow is Philippe Laffont of Coatue Management. He’s been incredibly successful, and after looking at some of the top holdings in his portfolio, it’s clear he’s bullish on artificial intelligence (AI). About a third of your portfolio is invested in six monster AI stocks, and I think each of them should be owned by individual investors by 2026.
Image source: Getty Images.
Coatue Management’s six AI-focused holdings are:
Metaplatforms(NASDAQ: META) (7.3% of the portfolio)
microsoft(NASDAQ:MSFT) (5.9% of the portfolio)
Semiconductor manufacturing in Taiwan(NYSE: TSM) (5.5% of portfolio)
Amazon(NASDAQ:AMZN) (4.7% of the portfolio)
NVIDIA(NASDAQ: NVDA) (4.5% of portfolio)
Alphabet(NASDAQ:GOOG)(NASDAQ:GOOGL) (4.3% of the portfolio)
In total, that represents 32.2%, or about a third of the portfolio’s total assets. However, it also has exposure to other AI investments in its portfolio; These are just some of the biggest ones. It’s clear that this billionaire believes these six will do well in 2026, and I think he’s on the right track.
Infrastructure players like Nvidia are expected to do well in 2026. Demand for graphics processing units (GPUs) is insatiable as AI hyperscalers look to get as much computing power online as quickly as possible. Nvidia told investors during its third-quarter earnings release that its cloud GPUs are “sold out” because demand is so high. This bodes well for anyone in this industry, including Taiwan Semiconductor, which is a major chip supplier for Nvidia.
AI development is expected to persist for many years. Nvidia expects global data center capital expenditures in 2025 to reach $600 billion. However, that figure is expected to rise to between $3 and $4 trillion by 2030.
If that works, companies like Taiwan Semiconductor and Nvidia will be making incredible purchases right now. Combine that with the fact that each of these stocks is down a bit from their all-time high, and each looks like a smart buy.
Moving on to AI hyperscalers, companies like Meta, Microsoft, Amazon, and Alphabet are spending a lot of money on AI computing power. While investors may be a little fed up with these costly capital expenditures, all four believe this investment is necessary to remain relevant in the future.
Of these four, Meta may be the most intriguing. Meta shares fell sharply after third-quarter earnings. While its growth and profitability were excellent, investors took issue with management’s spending plans for 2026. As a result, the stock plunged and is now the cheapest of these six when valued against next year’s earnings.
TSM PE Ratio (1-Year Forward) Data from YCharts
At 21.8 times next year’s earnings, Meta is priced at roughly the same level as the S&P 500 index. Given that Meta is expected to deliver market-beating growth, it seems like an obvious investment.
Amazon, Alphabet and Microsoft operate leading cloud computing platforms. These will be the long-term winners as customers continue to need more and more computing power as generative AI workloads become more common. Additionally, each of these companies also has their own generative AI model or has deep partnerships with one of the major players. This puts them in a great position to be successful not only in 2026, but in the years after as well.
Billionaire Philippe Laffont has wisely positioned his portfolio to take advantage of the enormous development of AI. I think investors should do the same, and these six are a great starting point.
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Keithen Drury has positions in Alphabet, Amazon, Meta Platforms, Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool ranks and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Billionaire Philippe Laffont Has a Third of His Portfolio in These 6 Incredible AI Stocks Ready to Dominate in 2026 originally published by The Motley Fool
