Third Point’s Loeb adds big stake in Alphabet, says AI is nearly half his portfolio

Third Point’s Dan Loeb said he built a “substantial” stake in Google parent Alphabet in the first quarter, adding that he’s so bullish on artificial intelligence that almost half of his portfolio is somehow tied to the theme. “We shared our views on AI’s transformational potential in recent letters and it is a key element of the thesis for nearly half of our equity positions today,” Loeb said in a new investor letter obtained by CNBC. The hedge-fund investor said he not only owns “legacy” companies like Microsoft and Amazon — which he said have built enormous competitive advantages — but he is also betting on London Stock Exchange Group , Alphabet and Taiwan Semiconductor Manufacturing , whose catalysts for upside are primarily “AI-driven.” Loeb had just exited Alphabet in the fourth quarter following a big run in 2023. At one point in 2023, he owned more than $500 million worth of Alphabet stock, one of his biggest holdings. Alphabet “has both a substantial distribution and technology advantage over competitors and is positioned to use its AI capabilities to unify, enhance, and better monetize the entire suite of its products,” Loeb said. Alphabet, which also owns YouTube, has gained another 17% in 2024 after surging 58% last year. In the first quarter, Third Point also added to its Taiwan Semi investment, initiated in May of last year. “In the years to come we see a combination of cyclical recovery plus structural growth in AI demand fueling substantial earnings growth for the company,” Loeb said of TSMC. Third Point had $11.5 billion in assets under management as of March. — CNBC’s Scott Wapner contributed reporting.