Bill Gates’ AI Picks: Are These 2 Stocks Must-Haves for Your Portfolio?
Written by
Yaël Bizouati-Kennedy
Edited by
Maria Concepcion
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Bill Gates, the co-founder of Microsoft and — one of the richest men on the planet — at the fifth spot, with a $153 billion net worth, according to the Bloomberg Billionaires Index — is betting big on artificial intelligence (AI).
Indeed, the Bill and Melinda Gates Foundation has big stakes in AI stocks.
Microsoft
- Year-to-date: 14.94%, as of April 10
- Past year: 47.30%, as of April 10
- Part month: 5.38%, as of April 10
Unsurprisingly, the foundation has a 34% stake in Microsoft- a $14.4 billion value, according to Hedgefollow data.
Microsoft is part of the group known as the Magnificent Seven, which also includes Alphabet, Amazon, Apple, Meta, Nvidia and Tesla. As JPMorgan noted, these companies have business models heavily dependent on technology and the current excitement around artificial intelligence (AI), which contributed to most of the S&P 500’s returns last year.
According to The Motley Fool, “valuation is a concern” with Microsoft, as it trades at “more than 31x forward earnings.” Schrödinger isn’t profitable yet, but its price-to-sales ratio is nearly 9.2x — a high
“That said, Microsoft is a good stock for long-term investors to buy and hold, despite its premium valuation,” The Motley Fool added.
Schrödinger
- Year-to-date: 18.87%, as of April 10
- Past year: 4.20%, as of April 10
- Part month: 7.39%, as of April 10
This stock is more surprising. The Gates Foundation holds only 0.59% of the stocks, for a $249.94 million value, according to Hedgefollow.
Yet, this makes Gates’ charitable organization the second-largest owner of Schrödinger, according to The Motley Fool.
“A branch of AI called machine learning is at the center of the company’s software platform,” according to The Motley Fool. “Schrödinger uses machine learning to predict molecular structures.”
TipRanks suggests a Moderate Buy analyst consensus rating for Schrodinger with a $38.22 average price target — which is 54.1% upside from current levels.
In addition, Jefferies analysts also maintained a Buy rating on the stock with a $40 price target, according to TipRanks.
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