The Three AI Stocks Billionaire Portfolio Managers Are Scaling Up For the Next Decade

The AI revolution is no longer a speculative future—it's a present-day reality reshaping global markets. As institutional investors and billionaire portfolio managers recalibrate their strategies, one theme dominates: long-term capital allocation in AI infrastructure. The companies building the hardware, cloud systems, and memory solutions that power artificial intelligence are now the darlings of Wall Street's most astute minds. For retail investors, this shift offers a roadmap to align with the next decade of innovation.

1. Nvidia (NVDA): The Engine of AI Computation

David Tepper's Appaloosa Management has more than quadrupled its stake in Nvidia in Q2 2025, betting on the chipmaker's dominance in AI accelerators. Nvidia's GPUs are the lifeblood of AI training, with demand surging as enterprises and governments deploy large language models (LLMs) and generative AI tools.

The company's H100 GPU and Grace CPU are now critical for hyperscalers like Amazon and Microsoft, while its Omniverse platform is redefining AI-driven simulations. Analysts project a 35% revenue increase for Nvidia in 2025, driven by its 65% market share in AI data center chips. For Tepper, this is a “decade-long bet”—a conviction shared by institutions that see AI hardware as the new oil.

2. Amazon (AMZN): The Cloud's AI Powerhouse

Bill Ackman's Pershing Square Capital Management has allocated nearly 10% of its portfolio to Amazon, targeting its AWS division. Amazon Web Services, which generates 53% of the company's operating profits, is the backbone of AI cloud computing.

AWS's Graviton4 processors and P5 instances are tailored for AI workloads, enabling businesses to deploy models at scale. Ackman's $1.28 billion investment reflects confidence in AWS's ability to capture 40% of the global cloud market by 2027. With AI-as-a-Service becoming a $1.2 trillion industry by 2030, Amazon's first-mover advantage in cloud infrastructure is a strategic moat.

3. TSMC (TSM): The Foundry of the Future

Stanley Druckenmiller's Duquesne Family Office and David Tepper have both increased stakes in TSMC, the world's largest semiconductor foundry. TSMC's 3nm and 2nm chip manufacturing processes are essential for producing the advanced GPUs and CPUs that power AI.

As AI demand pushes chip complexity to new heights, TSMC's $35 billion capital expenditure plan for 2025 ensures it remains the sole provider of next-gen AI chips. With Apple, Nvidia, and AMD all relying on TSMC for their AI hardware, the company's role in the ecosystem is irreplaceable. Analysts project TSMC's revenue to grow 20% annually through 2030, driven by AI and AIoT (AI of Things) adoption.

Strategic Alignment and Institutional Confidence

The billionaire playbook for 2025 is clear: prioritize infrastructure over applications. While Meta and Google are still innovating in AI software, the real money is flowing into the companies that make AI possible. This trend is reinforced by regulatory tailwinds, such as U.S. government subsidies for domestic chip manufacturing and cloud security mandates.

For investors, the lesson is twofold:
1. Diversify within the AI stack—hold a mix of hardware (Nvidia, TSMC), cloud (Amazon), and memory (Micron) stocks.
2. Hedge macro risks—allocate 5–10% of AI portfolios to regulated crypto ETFs like IBIT to offset inflationary pressures.

Conclusion: Building for the Long Game

The AI stocks scaling up in 2025 are not just riding a hype cycle—they're laying the groundwork for a $10 trillion AI economy by 2030. Billionaire portfolio managers are betting on companies that will profit from every phase of this transformation, from chip design to cloud deployment. For investors with a 10-year horizon, aligning with these infrastructure leaders offers a compelling path to outperform the market.

As the AI revolution accelerates, the winners will be those who build the tools that power it. The time to act is now.