Ken Griffin, through his Citadel hedge fund, adopted a highly diversified investment strategy by holding over 5,800 different positions. This approach has proven successful as Griffin’s net worth is approximately $43 billion. Among his extensive portfolio are several artificial intelligence (AI) stocks. In the second quarter of 2024, Griffin significantly increased his investments in three key AI stocks: Amazon, Apple, and Broadcom.
1. Amazon
Amazon stands as Griffin’s largest individual stock investment and ranks as his third-largest holding overall, following two exchange-traded funds. As of June 30, 2024, Citadel held 7.69 million shares of Amazon, valued at around $1.49 billion, indicating a nearly 17% increase in the second quarter. Amazon extensively integrates AI across its operations, using it for product recommendations, operating its Alexa AI assistant, and optimizing warehouse processes, while Amazon Web Services (AWS) offers extensive AI tools. Despite challenges from OpenAI’s ChatGPT and competition from Microsoft Azure and Google Cloud, Griffin remains confident in Amazon’s position as a leader in AI and AWS’s status as the top cloud services provider.
2. Apple
Apple is Griffin’s second-largest individual stock investment, with Citadel holding 5.47 million shares worth $1.15 billion at the end of the second quarter. Griffin expanded his position in Apple by 93% during this period. The introduction of Apple’s generative AI capabilities, known as Apple Intelligence, fueled this investment. Analyst Dan Ives from Wedbush believes this innovation could spur a significant cycle of iPhone upgrades, benefiting Apple’s growth. However, some analysts are cautious, arguing that delays in rolling out AI features might impact growth, even as Apple’s stock trades at a forward price-to-earnings ratio near 30. While some remain skeptical about the immediate impact, long-term prospects for Apple’s growth remain optimistic.
3. Broadcom
Broadcom represents Griffin’s third-largest AI investment and is among Citadel’s top 10 holdings. The hedge fund owned 4.84 million shares of Broadcom, valued at $776.7 million, by the end of Q2, reflecting a 64% increase. AI serves as a major growth engine for Broadcom, with CEO Hock Tan forecasting $12 billion in AI revenue for fiscal year 2024, representing 23% of the company’s total projected revenue. Despite the positive outlook, Broadcom’s revenue grew by only 4% year-over-year, excluding the VMware acquisition. Nonetheless, Wall Street remains optimistic, with most analysts recommending Broadcom as a "buy" or "strong buy."
In conclusion, Griffin’s strategic investments in Amazon, Apple, and Broadcom highlight his confidence in the potential of AI-related growth.
