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27 April
3 Top Artificial Intelligence (AI) Stocks That Billionaires Jim Simons, Ray Dalio, and Israel Englander Are Buying
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Jim Simons, Ray Dalio, and Israel Englander are some of the most successful investors in history.

All three are billionaires, and their respective hedge funds -- Renaissance Technologies, Bridgewater Associates, and Millennium Management -- have made thousands of investors rich along with them.

In investing, there are no bonus points for originality, so it pays to study the masters. In fact, thanks to the 13F filings required by the Securities and Exchange Commission (SEC) every quarter, you can invest alongside these billionaires as well.

According to Motley Fool Research, these investors all own three of the same "Magnificent Seven" tech stocks. Keep reading to see what they are and if these stocks are right for you.

An investor studying multiple screens.

1. Nvidia

It's probably not a surprise to see Nvidia (NASDAQ: NVDA) on this list. More than any other company, Nvidia has been the flag bearer of the AI boom as its sales and profits skyrocketed over the last year, propelling the stock past a $2 trillion market cap, and making it the third-most valuable company in the world behind Microsoft and Apple. Nvidia's graphics processing units (GPUs) have become the backbone of AI infrastructure, and the company has faced little competition thus far, though competition is coming.

Simons, Dalio, and Englander all count Nvidia among their top holdings. At Renaissance Technologies, Nvidia is the second-largest tech holding, making up 1.2% of the portfolio, or $767.5 million at the end of the fourth quarter.

Dalio's Bridgewater Associates, meanwhile, counts Nvidia as its third-largest tech holding with $133 million in Nvidia stock at the end of Q4. The fast-growing chip stock made up 0.7% of Bridgewater's portfolio.

Finally, Nvidia makes up the fourth-largest tech holding in Englander's Millennium Management at 1% of the portfolio, or $1.02 billion.

It's unclear if these funds held, added to, or sold Nvidia in Q1, but we'll learn soon as 13F filings are due by mid-May. If they hold on to their Nvidia stakes, that move paid off as the stock jumped 82% in Q1.

2. Meta Platforms

Meta Platforms (NASDAQ: META) is another top holding of these hedge funds, and like Nvidia, it's soared over the last year and a half. While Meta has benefited from the AI boom, the primary reason for its surge is a successful turnaround driven by cost cutting and a resurgence in its ad business that led to record profits.

Looking ahead, the company still seems to have plenty of growth in front of it, especially with the new opportunity in AI, though some advertisers have recently complained that the company's ad manager has been unreliable.

At Renaissance, Meta represents the fund's fourth-largest holding in the tech sector with $744 million worth of Meta stock. Meta makes up 1.2% of the fund's value.

Ray Dalio's Bridgewater, meanwhile, is even more bullish on Meta as the social media giant makes up 1.3% of its portfolio as its second-biggest tech holding. The fund finished Q4 with $235.8 million worth of Meta stock.

Lastly, Millennium held $719.7 million in Meta stock as of the end of Q4, or 0.7% of the portfolio. That made it its fifth-largest tech holding.

3. Alphabet

Finally, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has long been a top stock among hedge funds as the Google parent's competitive advantages are manifest with its dominant search engine, properties like YouTube, and promising "moonshot" businesses like its Waymo autonomous vehicle unit, and its AI investments like Google Brain and DeepMind.

Alphabet hasn't had the kind of blowout performance over the past year that Nvidia and Meta have, but it's still outperformed the S&P 500 and recently touched an all-time high. Given its history of reliable growth and wide economic moat, it's not surprising that Alphabet is also a top pick among these three funds.

At Renaissance, Alphabet was its sixth-largest tech holding, worth $487.2 million, or 0.8% of the total portfolio.

Bridgewater was more bullish on Alphabet than any other tech stock, counting it as its top-tech holding at 1.6% of the total portfolio. As of the end of Q4, Bridgewater owned $285.6 million worth of Alphabet stock.

Millennium also counts Alphabet as a top holding as the Google owner's stock makes up 1.8%, or $1.56 billion. Only Microsoft is a larger tech holding at Englander's fund.

What it means for investors

Hedge fund ownership isn't a guarantee of outperformance, but it's worth tracking the moves of the biggest investors, especially if their holdings are similar to yours.

Keep your eye on these stocks come mid-May as they could move once we learn which funds bought and sold them in Q1. Nonetheless, I'd expect them to remain top holdings among the biggest hedge funds.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.