Bill Ackman’s Top AI Picks: Amazon and Meta Set for Major Gains

Bill Ackman’s Strategic Investments in Leading AI Companies

Renowned billionaire investor Bill Ackman, founder of Pershing Square Capital Management—one of the most successful hedge funds ever tracked by LCH Investments—has made substantial investments in two standout artificial intelligence stocks during 2025. These moves highlight his confidence in their growth potential, particularly as Wall Street analysts project significant share price increases over the coming year.

Ackman’s portfolio currently allocates nearly a quarter of its total capital to Amazon and Meta Platforms, reflecting a deliberate strategy to capitalize on the expanding AI landscape. Both companies are leveraging cutting-edge AI technologies to enhance their core operations, boost profitability, and open new revenue streams. Investors looking for inspiration from proven market experts would do well to examine Ackman’s rationale behind these positions.

As of the latest filings through December, Pershing Square held 23% of its assets in these two tech giants. Market consensus underscores the upside: analysts’ median price target for Amazon stands at $285 per share, suggesting approximately 43% potential appreciation from its recent trading level around $199. For Meta Platforms, the median target of $850 per share points to about 32% upside from roughly $640. These projections are based on robust fundamentals and AI-driven innovations.

Amazon represents 13% of Ackman’s portfolio, underscoring its pivotal role in his investment outlook. The company’s dominance in e-commerce and cloud computing forms the bedrock of this thesis. Amazon operates the premier online retail marketplace across North America and much of Western Europe, while its Amazon Web Services (AWS) division commands the top spot in public cloud infrastructure and platform services by spending metrics.

Amazon’s AI-Powered Transformation in Retail and Cloud

A key pillar of Ackman’s optimism lies in Amazon’s aggressive integration of artificial intelligence across its operations. The firm has engineered hundreds of generative AI applications specifically tailored to streamline its retail ecosystem. These tools are revolutionizing everything from inventory optimization—ensuring products are positioned in the most efficient locations—to warehouse management workflows and even the coordination of robotic systems within fulfillment centers.

Ackman emphasizes that these AI advancements, combined with robust expansion in high-margin advertising revenues, position Amazon for substantial improvements in operating margins. Supporting this view, Amazon’s operating margin—adjusted for one-time items—rose by 1.5 percentage points during the fourth quarter, demonstrating tangible progress in efficiency gains.

Turning to AWS, the cloud segment has rolled out numerous AI-enhanced offerings, including bespoke chips where sales are surging at triple-digit annual rates, alongside developer tools and sophisticated AI agents. Ackman argues these developments not only sustain but could accelerate AWS’s revenue trajectory. This perspective aligns with recent performance: cloud services revenue accelerated 24% year-over-year in the fourth quarter, marking the strongest growth pace in over three years.

Despite trading about 20% below its all-time highs, Amazon’s stock faces some investor skepticism tied to elevated AI-related capital expenditures. However, analysts at Morgan Stanley counter this concern, asserting that such investments are warranted given Amazon’s prime positioning to reap rewards from physical AI applications, such as autonomous robotics. This analysis resonates strongly, as Amazon’s robotics initiatives in logistics could yield transformative efficiencies.

Looking ahead, Wall Street forecasts annual earnings growth of 17% for Amazon over the next three years. At a forward price-to-earnings multiple of 28, the valuation appears balanced for a company of its stature and growth prospects. For those with a long-term horizon, establishing a modest position now could prove prudent amid ongoing AI momentum.

Meta Platforms: Dominating Advertising and Emerging in Wearables

Meta Platforms accounts for 10% of Ackman’s holdings, with his investment case rooted in its position as the world’s second-largest advertising technology provider. Through ownership of powerhouse social media platforms like Facebook and Instagram, Meta gains unparalleled visibility into user behaviors and preferences, enabling hyper-precise ad targeting that drives superior results for marketers.

Ackman describes Meta as an indispensable platform for businesses aiming to optimize their advertising expenditures. He sees it as a prime beneficiary of AI progress, with the company deploying custom-designed AI chips and proprietary models that synergize to deliver highly personalized user experiences. These enhancements are yielding dual benefits: heightened user engagement and superior performance metrics for advertisers.

Meta’s Chief Financial Officer, Susan Li, highlighted the impact during recent earnings discussions: optimizations implemented in the fourth quarter boosted views of organic feed and video content on Facebook by 7%, marking the most significant quarterly revenue contribution from Facebook product updates in over two years. Additionally, average ad pricing rose 6% year-over-year, fueled by surging advertiser demand and enhanced ad effectiveness.

Beyond its advertising stronghold—which remains the primary near-term growth engine—Meta is eyeing long-term opportunities in superintelligent AI integration for smart glasses. The company already holds over 70% market share in this nascent category, with projections from Counterpoint Research indicating annual spending growth of 60% through 2029. This positions Meta to capture substantial value as wearable AI evolves.

Analysts project 19% annual earnings growth for Meta over the next three years, rendering its current 27 times forward earnings valuation compelling. Investors exercising patience may find value in initiating a small stake at current levels.

Why These AI Stocks Align with Ackman’s Philosophy

Ackman’s selections reflect a broader philosophy of investing in businesses with durable competitive advantages, accelerated by technological inflection points like AI. Both Amazon and Meta exemplify this: Amazon through its e-commerce and cloud leadership, Meta via social connectivity and advertising prowess. Their AI initiatives are not mere add-ons but core drivers enhancing efficiency, engagement, and monetization.

For Amazon, the synergy between retail AI tools and AWS innovations creates a virtuous cycle of growth and margin expansion. Meta’s AI-driven personalization strengthens its ad ecosystem while paving the way for hardware expansions. Wall Street’s bullish targets validate these narratives, with substantial upside baked into consensus estimates.

Challenges persist, including capex intensity and macroeconomic sensitivities, yet the risk-reward profile favors patient holders. Ackman’s track record—navigating complex markets with high-conviction bets—lends credibility to this concentrated exposure. As AI adoption permeates industries, these positions could deliver outsized returns, mirroring historical patterns of tech leaders during paradigm shifts.

In summary, Bill Ackman’s bold allocations to Amazon and Meta Platforms signal strong conviction in their AI trajectories. With analyst forecasts pointing to 32-43% share price appreciation and robust earnings growth, these stocks merit consideration for diversified portfolios focused on technological innovation.