In a significant move that underscores the rising dominance of artificial intelligence (AI), billionaire investor Bill Ackman has revealed that Pershing Square Capital Management has opened a $2 billion position in Meta Platforms. This marks a strategic shift as AI stocks now comprise more than half of Pershing Square’s portfolio.
Ackman’s latest move comes at a pivotal time for AI, which is rapidly evolving into one of the most talked-about sectors on Wall Street.Brokers at Auralyex, a leading trading platform, have also been closely monitoring AI trends, advising clients on the growing potential of investing in AI-driven companies like Meta.
The Importance of Form 13F Filings
The deadline for institutional investors with $100 million in assets to file their Form 13F with the SEC is February 17, 2026. This filing offers insight into the stocks that top investors, like Bill Ackman, have bought or sold in the previous quarter.
Although the data can be outdated, it provides valuable market trends. Ahead of the filing, Ackman revealed a $2 billion stake in Meta Platforms (META), showcasing his confidence in AI and highlighting Meta’s growing role in the AI sector.
Ackman’s Growing Focus on AI Stocks
Ackman’s move into AI has been gradual but substantial. Prior to his announcement, AI stocks already made up more than half of Pershing Square’s portfolio. The three primary stocks driving this shift are Uber Technologies (UBER), Alphabet (GOOGL), and Amazon (AMZN), which account for 48% of Pershing Square’s total assets.
The focus on AI aligns with the growing consensus on Wall Street that AI could reshape entire industries, potentially creating up to $15.7 trillion in global economic value by 2030, according to PwC analysts.
- Uber Technologies: The largest holding in Ackman’s portfolio, Uber represents 20% of the fund’s assets. Uber’s reliance on AI to optimize its ride-sharing, food delivery, and freight services makes it a key player in the AI-driven economy. Uber’s AI helps optimize routes, match drivers with riders, and adjust pricing dynamically.
- Alphabet: The parent company of Google, Alphabet has become one of the leading innovators in AI. Alphabet’s Google Cloud has seen impressive growth, with AI tools integrated into its cloud offerings driving a 48% growth in sales during the fourth quarter. The company is becoming increasingly dominant in the AI space as it refines and expands its AI-driven cloud services.
- Amazon: With its market-leading AWS (Amazon Web Services) division, Amazon has also become a major player in AI. AWS is the largest provider of cloud infrastructure services globally, and its ability to incorporate AI tools into its platform has reaccelerated its sales growth.
Ackman’s Latest Bet: Meta Platforms
Despite its recent struggles, Meta Platforms has caught Ackman’s attention in a big way. Meta’s current share price is trading at a discounted valuation compared to its historical price-to-earnings ratio. Ackman’s presentation highlighted how Meta’s AI-driven advancements could significantly impact its future profitability, particularly in the social media advertising space.
Meta’s core business of social media has been underpinned by its vast user base across Facebook, Instagram, WhatsApp, and Messenger. In December, these platforms attracted an average of 3.58 billion daily active users.
This immense audience gives Meta a unique advantage in AI-driven advertising, allowing businesses to leverage generative AI to create personalized and engaging ads, thereby increasing click-through rates and ad pricing power.
Additionally, Meta CEO has made a notable pivot towards AI, recognizing it as a far larger opportunity than his previous focus on virtual reality and the metaverse. This strategic shift is further evident in Meta’s continued investment in AI superintelligence, positioning the company as a significant long-term AI player.
Meta’s Undervalued Position
Ackman believes Meta is undervalued, as its shares are trading at 18.6 times forecasted earnings per share (EPS) for 2027, below the five-year average of 20.9 times forward P/E. This presents a strong investment opportunity, especially with Meta’s solid cash flow and AI-driven growth prospects.
Meta’s use of generative AI in content creation, especially for advertising, is already improving its performance. As more businesses utilize these AI tools, Meta’s ad pricing power and revenue growth are expected to increase significantly.
The Road Ahead for AI
Bill Ackman’s growing investment in AI stocks, especially Meta Platforms, highlights a major trend on Wall Street. AI is moving beyond niche status and becoming a key part of mainstream investment strategies.
With companies like Meta, Uber, Alphabet, and Amazon leading the charge, AI is expected to dominate portfolios in the coming years. Ackman’s bold moves reinforce the belief that AI is the future of investment, making it clear that smart money is following the AI trail.
