Billionaire investor George Soros, initially wary of AI's societal impact, seems to have changed his tune. While previously expressing concerns that AI could threaten open societies, his fund, Soros Fund Management, has made significant investments in two 'Magnificent Seven' stocks deeply involved in AI: Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL).
This move suggests a shift towards a pragmatic 'if you can't beat 'em, join 'em' approach. Analysts largely agree with Soros's fund's assessment, with both Amazon and Alphabet receiving 'Strong Buy' ratings from the analyst consensus, according to TipRanks data.
Amazon's Expanding Empire
Amazon, originally an online bookseller, has evolved into a global behemoth encompassing e-commerce, cloud computing (AWS), logistics, entertainment, and, increasingly, artificial intelligence. From selling books to shaping online shopping habits and digital infrastructure, Amazon's reach is undeniable.
Alphabet's AI Momentum Fuels $4 Trillion Ambition
Separately, Alphabet (GOOG, GOOGL), Google's parent company, is on track to reach a historic $4 trillion market valuation. This surge is driven by its intensified focus on artificial intelligence tools and a year-long rally in its stock price. Shares saw a premarket jump, potentially pushing the tech giant past this significant milestone.
Alphabet is now vying for dominance in the AI arena alongside other Big Tech companies. A recent report indicates that Meta (META) is considering investing billions in Google's AI chips (Tensor Processing Units or TPUs) for its data centers as early as 2027. Meta may also rent Google's cloud-based chip usage in 2026. This potential agreement would signal Google's growing competitiveness against Nvidia (NVDA) in the crucial AI chip market, as companies scramble to build data centers to handle the anticipated AI boom. Meta's potential endorsement would solidify Google's technology as a viable alternative in the AI chip landscape.