Billionaire Daniel Loeb bought stakes in Alphabet, Meta Platforms, and Broadcom during Q1, signaling confidence in three AI-focused stocks.

Daniel Loeb of Third Point Management opened a new position in Alphabet in Q1 after a couple of years without a stake, and also reopened positions in Meta Platforms and Broadcom during the same period.

Alphabet's competitive strengths include custom Tensor Processing Units (TPUs—chips optimized for AI training and inference) developed over more than a decade, which it leases to Google Cloud clients and direct customers as a new revenue source. Meta is using AI to improve its recommendation algorithm and help advertisers target users more effectively, growing revenue by 33% last quarter while raising ad prices by 12%. Broadcom expects AI semiconductor revenue of $56 billion this fiscal year, with management forecasting that figure will rise to well over $100 billion next year.

Meta is now just starting to serve ads on WhatsApp and is still building out Threads, presenting growth opportunities. Broadcom is positioned to benefit as hyperscalers develop custom chips and diversify away from Nvidia's GPUs, especially for inference workloads (the step where AI produces answers).