5️⃣ Five stocks that AI investors are buying worth following

This week we are going to take a look at five stocks that AI investors are buying and ask the question: "should a quality growth investor also invest?"

The inspiration for this post came from recent 13F filings, which offer a fascinating window into where "smart money" is positioning itself, particularly in tech.

1. NVIDIA: While not a traditional fund manager, the semiconductor giant holds direct investments in a range of companies across the silicon and AI ecosystems. Alongside familiar names like Intel, Nokia and Synopsys, NVIDIA has backed less familiar companies such as Coherent Corp. and Generate Biomedicines.
2. Blue Whale Capital: This prominent UK fund manager does not just invest in tech, but in recent months they have aggressively added new positions to their high-conviction portfolio, including Lumentum, SanDisk, Seagate Technology and Vertiv Holdings.
3. The Situational Awareness Fund: Run by former OpenAI researcher Leopold Aschenbrenner, this fund is focused heavily on the massive infrastructure required to sustain the AI boom. Notable names from his recent disclosures include Bloom Energy, CoreWeave, IREN, Keel Holdings, Solaris Energy Infrastructure and WhiteFiber.

Business models

To understand if these companies fit a quality growth framework, we must first look at how they generate revenue. The companies on this list can be broadly categorised into four distinct layers of the AI value chain: compute, components, power and cooling, and applications.