Investors are advised to closely monitor AI stocks, particularly those that have garnered attention from billionaire money managers. These individuals often influence market trends through their investment choices, which can be tracked through quarterly filings disclosing their portfolio changes.
Uber
Uber Technologies (UBER) has evolved as a significant player in the technology sector, although it has faced challenges since its IPO in 2019. Under the leadership of CEO Dara Khosrowshahi, who joined in 2017, Uber has streamlined operations and reported substantial growth. In 2024, the company generated $9.86 billion in profits, increasing its free cash flow (FCF) to nearly $6.9 billion from $3.36 billion in 2023. The FCF margin stood at 15.7%, indicating effective management and a solid operational strategy. Noteworthy is a 19% growth in total trips during 2024.
Recently, billionaire investors have shown renewed interest in Uber. David Tepper’s Appaloosa Management first invested in the company in 2021 and has traded shares multiple times, buying again in 2024 after significant sales. Bill Ackman’s Pershing Square Capital Management has acquired 30.3 million shares of Uber, valued at $2.37 billion, potentially making it the largest position in Ackman’s portfolio, which consisted of only 11 stocks at the end of the third quarter of 2024. Ackman lauded Khosrowshahi’s leadership, calling Uber “a highly profitable and cash-generative growth machine” available at a substantial discount to its intrinsic value.
Uber is also exploring autonomous vehicle (AV) technology, which it estimates could be a $1 trillion opportunity in the U.S. However, challenges in demonstrating safety, hardware scalability, and regulatory clarity remain. The company has partnered with AV firms like WayMo and WeRide and plans to begin testing AVs in its fleet soon.
Astera Labs
Astera Labs is identified as a key contributor to the AI data center revolution. The company designs semiconductors and smart cables essential for high-speed communication in data servers, notably addressing latency and signal degradation with its Aries Smart Retimer chips. Astera’s Compute Express Link (CXL) technology enhances performance by permitting multiple AI accelerators to share memory resources. Its total addressable market is projected to exceed $10 billion by 2027, positioning the company favorably as AI demands intensify. Despite current operating losses, Astera Labs maintains a Financial Health Score of 2.6/5.0 and has seen an impressive 118% return since its IPO in March 2024.
Palantir
Palantir Technologies (NASDAQ: PLTR) and Salesforce (NYSE: CRM) are compared as leading enterprise software providers capitalizing on AI. Palantir’s market capitalization has been growing, closely approaching Salesforce’s, which exceeds it by about $52 billion. Analysts project stronger revenue and earnings growth for Palantir compared to Salesforce. While Salesforce has faced scrutiny for consistency in revenue growth post-acquisitions, Palantir is collaborating with major tech companies like Microsoft and Amazon, enhancing its growth prospects with its Palantir Artificial Intelligence Platform (AIP).
Palantir at $116: If last year’s run wasn’t a fluke, is $200 next?
Dell
Dell Technologies has emerged as a vital player in AI infrastructure, producing AI-optimized PowerEdge servers and high-performance storage solutions, such as its PowerScale platform. These technologies cater to the increasing demand for advanced IT solutions as companies adopt AI. Dell is noted for its annualized dividend payout of $1.80 per share, representing a yield of 1.6%. Analysts foresee a 36.7% upside for Dell’s shares, with price targets ranging from $115.00 to $220.00 (mean: $150.70).
IONQ
IONQ is pioneering quantum computing, utilizing AI to enhance quantum algorithms and optimize hardware-software integration. Industry forecasts predict a $100 billion market for quantum computing by 2035, driven by AI. IONQ’s stock has surged 232% over the past year, backed by investor confidence in its quantum-AI strategy, with analysts predicting a 14.7% upside and price targets between $30.00 and $54.00 (mean: $44.33).
Tempus
Tempus AI recently announced a collaboration with the Institute for Follicular Lymphoma Innovation (IFLI) to develop targeted therapies for follicular lymphoma. Utilizing its data analytics platform Lens, Tempus aims to generate AI-informed insights to accelerate treatment development. Following this announcement, Tempus shares rose nearly 15% to $84.85, achieving an all-time high. The stock has increased nearly 50% in February 2025 and has more than doubled since its IPO price of $37 last June.
Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.
Featured image credit: Kerem Gülen/Ideogram
