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Billionaires Are Selling Nvidia and Betting on This AI Stock That's Climbed Nearly 300% Over the Past 3 Years

Sun Jun 15, 2025

Adria Cimino, The Motley Fool

5 min read

In This Article:

  • Artificial intelligence chip designer Nvidia has been popular among billionaires in recent years, and its stock has soared more than 1,000%.

  • Now, some of these billionaires are looking to another company that's investing significantly in AI.

  • 10 stocks we like better than Meta Platforms ›

Nvidia (NASDAQ: NVDA) has been a no-brainer choice for investors aiming to win in the artificial intelligence (AI) market. The stock has soared 1,500% over the past five years as this AI chip leader delivered quarter after quarter of record revenue growth -- and this story is far from over. Nvidia's market dominance and innovation should help it to benefit as the AI boom continues.

But some billionaires have decided to move on, selling some or all of their Nvidia shares and focusing on other potential AI winners. For example, Stanley Druckenmiller of the Duquesne Family Office sold all his Nvidia shares in the third quarter of last year. Just recently, David Tepper of Appaloosa and Philippe Laffont of Coatue Management cut their positions in Nvidia.

As some investors reduce exposure to the top chipmaker, another AI stock, one that's climbed nearly 300% over the past three years, is emerging as an investor favorite. Let's check it out.

Three smiling investors work together at a table in an office.

Image source: Getty Images.

The stock I'm talking about is among the top five stock holdings of Tepper, and it's the No. 1 stock holding of Laffont, as well as fellow billionaires Chase Coleman of Tiger Global Management and Stephen Mandel Jr. of Lone Pine Capital. Ole Andreas Halvorsen of Viking Global Investors is also bullish on this stock, opening a position in the first quarter of this year.

This player that's been much sought after by billionaires in recent times is Meta Platforms (NASDAQ: META), a company you are probably very familiar with thanks to its social media dominance. Meta owns Facebook, Messenger, Instagram, and WhatsApp -- more than 3.4 billion people worldwide use at least one of these apps daily.

Here's how billionaires Tepper, who oversees $8.3 billion, and Laffont, who manages $22 billion, took action on Nvidia and Meta in the first quarter:

  • Tepper sold 55% of his Nvidia stock and now holds 300,000 shares. He increased his Meta position by 12% to 550,000 shares. It's his fifth-biggest stock position.

  • Laffont cut his Nvidia position by 14% to 8,545,835 shares. He lifted his Meta position by 1.9% to 3,757,611 shares. As mentioned above, Meta is the biggest position in his portfolio.

Considering these moves and Meta's top spot in the portfolios of other billionaires, it's clear these expert investors see the company as a potential winner in the AI revolution. You may be wondering why this is the case, given that Meta is best known for its strengths in the social media industry. Well, Meta has also been building AI expertise in the form of its own large language model (LLM), Llama, to power innovations that may ensure its leadership in social media -- and, therefore, revenue growth.