Investing in artificial intelligence (AI) has become a hot topic among investors, with many recognizing the potential for significant growth. Billionaire Ken Fisher, founder of Fisher Investments, believes that high-quality growth is the key to successful AI investing. Fisher’s two largest holdings, Apple and Microsoft, are excellent examples of companies well-positioned to capitalize on the AI revolution.
Fisher’s firm manages a diverse portfolio for high-net-worth individuals and institutional investors, making his insights into the AI market particularly valuable. While some investors worry about a potential AI bubble, Fisher suggests that the recent rise in technology stocks is mostly about rebounding from the market decline of 2022 and seeking quality growth. He acknowledges that AI plays a role in this growth, but emphasizes the importance of investing intelligently.
Apple is Fisher’s top holding, with Fisher Asset Management owning over 52 million shares valued at $10 billion. The company’s consistent and impressive growth makes it an attractive investment option. Over the past decade, Apple’s revenue has increased by 153%, while its earnings per share have surged by 415%. These remarkable figures have propelled the company’s stock up by more than 1,170%, securing its position as the first company to surpass a $3 trillion market cap. With its strong foundation and commitment to integrating AI into its products, such as the recent release of the Vision Pro mixed-reality headset, Apple is poised for further growth.
Microsoft is Fisher’s second-largest holding, with Fisher Asset Management owning over 24 million shares valued at more than $8.2 billion. Like Apple, Microsoft has a long history of quality growth. Over the past decade, the company has experienced a 185% increase in revenue and a 295% surge in earnings per share. These impressive numbers have propelled Microsoft’s stock up by over 894%. Microsoft has made no secret of its AI aspirations, incorporating generative AI and ChatGPT into its Bing search engine, and planning to make the technology widely available through its Azure cloud service. Analysts predict that Microsoft could join Apple in the $3 trillion club by early next year.
While some may hesitate to invest in Apple and Microsoft due to their already substantial market capitalizations, experts believe that both companies have room for further growth. Analyst Dan Ives suggests that Apple could be worth $4 trillion by 2025, and Microsoft is also anticipated to reach a $3 trillion market cap. Estimates for the overall AI market vary, with differing predictions from firms like Morgan Stanley and Goldman Sachs. However, given the vast implications and potential use cases for AI, it is likely that companies successfully harnessing this technology could experience significant growth in the future.
In conclusion, investing in AI is a popular choice among investors, and Ken Fisher’s top holdings reflect his belief in the importance of high-quality growth. Both Apple and Microsoft have demonstrated consistent growth and have embraced AI in various aspects of their businesses. While predictions for the AI market’s value may vary, companies that effectively harness this technology have the potential for substantial growth. As always, intelligent investing involves seeking out opportunities that align with long-term growth prospects.
