Diversification Pays Off: Ken Griffin’s AI Portfolio
Ken Griffin, the mastermind behind Citadel hedge fund, has built a staggering portfolio of over 5,800 holdings. His strategy of not putting all his eggs in one basket has paid off handsomely, with his net worth soaring to a whopping $43 billion. Amidst this vast portfolio, Griffin has a significant stake in artificial intelligence (AI) stocks. Let’s dive into his top three AI picks and explore whether they’re worthy investments.
Amazon: The AI Powerhouse
Griffin’s largest individual stock holding is Amazon, with a staggering 7.69 million shares worth $1.49 billion. He’s bullish about the e-commerce giant, increasing his stake by 17% in the second quarter of 2024. AI is deeply ingrained in Amazon’s business, from product recommendations to optimizing warehouse operations. Despite facing stiff competition from Microsoft Azure and Alphabet’s Google Cloud, Amazon remains the top cloud services provider.
Apple’s AI Ambitions
Apple is Griffin’s second-largest individual stock holding, with 5.47 million shares worth $1.15 billion. He aggressively increased his stake in Apple by 93% in Q2, likely due to the company’s introduction of generative AI capabilities, dubbed Apple Intelligence. While some analysts are skeptical about Apple’s slow rollout, others believe it could ignite a supercycle of iPhone upgrades. With a forward price-to-earnings ratio of nearly 30, the stock may already be priced for growth, but it’s still a solid long-term investment.
Broadcom: The AI Growth Engine
Broadcom ranks as Griffin’s third-largest AI position and one of his top 10 overall holdings. He owns 4.84 million shares worth $776.7 million, increasing his stake by 64% in Q2. AI is a significant growth driver for Broadcom, with the company expecting to generate $12 billion from AI in fiscal year 2024. Despite some revenue growth concerns, Wall Street analysts are overwhelmingly bullish about Broadcom’s prospects. With its new AI infrastructure products and strong growth potential, Broadcom is an attractive AI stock to buy and hold.
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