Why Billionaires Are Piling Into Microsoft and Meta for 2026 - and Why You Should Too

The world's most astute investors are increasingly viewing artificial intelligence as the defining growth engine of the next decade. For 2026, two tech giants-Microsoft and Meta-have emerged as focal points of billionaire capital, with Third Point, Tiger Global, and other top fund managers reshaping their portfolios to capitalize on AI-driven opportunities. By analyzing these strategic shifts, individual investors can identify a compelling case for aligning with these bets, leveraging billionaire portfolio allocations as a barometer for high-conviction growth stocks.

Billionaire Portfolio Shifts as a Barometer

Daniel Loeb's Third Point has amplified its stake in Microsoft, with the tech giant now accounting for 6.81% of the fund's portfolio in Q3 2025-a more than doubling of its position. Loeb's rationale is rooted in Microsoft's centrality to the AI revolution: its 27% ownership of OpenAI, coupled with Azure's dominance in cloud infrastructure, positions it as a linchpin for generative AI adoption. Meanwhile, Tiger Global Management, led by Chase Coleman, has taken a more nuanced approach. While it reduced its Meta stake by 63%, it maintains Microsoft as its largest holding at 10.5%, reflecting a strategic pivot toward companies with clearer AI monetization pathways according to market analysis.

These moves signal a broader trend: investors are prioritizing firms that can translate AI infrastructure spending into revenue. Microsoft's platform-driven model-selling AI tools to enterprises-has proven more immediately lucrative than Meta's long-term integrator strategy, which embeds AI into advertising and search to enhance user engagement according to industry experts.

Microsoft: The AI Infrastructure Powerhouse

Microsoft's AI ambitions are backed by a $80 billion investment in 2025, dwarfing Meta's $60–65 billion commitment according to market analysis. This spending has already translated into tangible results: the company generated $13 billion in annual AI revenue in 2025, with a staggering 175% year-over-year growth rate according to financial reports. Products like Azure AI, Copilot subscriptions, and enterprise licensing are driving this momentum, with analysts projecting Copilot alone to generate $10 billion in revenue by FY26.

The market has taken notice. Microsoft's forward P/E ratio of 35.3x as of Q4 2025 reflects investor confidence in its AI-driven earnings trajectory according to market analysis. This valuation is further justified by its recent outperformance: Q4 FY25 earnings per share (EPS) of $3.65 exceeded forecasts of $3.37, driven by robust cloud and AI growth according to earnings call transcripts. For investors, this represents a company not only capitalizing on AI but also demonstrating the operational discipline to convert capital expenditures into shareholder value.

Meta: The Undervalued Long Game

While Meta's AI strategy is less immediately revenue-generating, its $60–65 billion infrastructure investment in 2025 has laid the groundwork for a longer-term payoff according to market analysis. Unlike Microsoft, Meta does not yet report direct AI revenue, but its AI-driven enhancements to advertising targeting and user engagement have bolstered its core business. A discounted cash flow (DCF) analysis suggests Meta is undervalued by 23.4%, with an intrinsic value of $841 per share compared to its current trading price according to financial data.

The stock's performance underscores this potential: Meta's shares surged from $470 in early 2024 to $830–$850 in January 2026, reflecting growing confidence in its AI pivot according to market research. Innovations like open-weights models (Llama 4) and AI-integrated wearables are positioning Meta to capture value in emerging markets. For patient investors, this represents a compelling opportunity to back a company reinventing itself for the AI era.

The Case for 2026 Growth

The broader AI infrastructure boom, projected to see hyperscalers invest over $527 billion in 2026, amplifies the case for Microsoft and Meta. Both companies are uniquely positioned to benefit: Microsoft as a platform enabler and Meta as a user-facing innovator. Tiger Global's new $2.2 billion venture capital fund, Private Investment Partners 17, further underscores the sector's potential, according to industry reports, as the firm adopts a more disciplined approach to AI-focused opportunities.

For individual investors, the billionaire playbook offers a roadmap. By aligning with these strategic allocations, investors can tap into the same conviction that drives institutional capital-leveraging AI's transformative power to build long-term wealth.

Conclusion

The convergence of billionaire portfolio shifts, AI infrastructure spending, and valuation metrics paints a clear picture: Microsoft and Meta are cornerstones of the AI-driven economy. While Microsoft's platform model offers immediate monetization and robust earnings, Meta's undervalued long-term strategy presents asymmetric upside. For 2026, the time to act is now.