Nvidia (NASDAQ:NVDA) has risen by triple digits over the past year thanks to its dominance of the artificial intelligence (AI) market. The company is the world’s leading manufacturer of AI chips and takes on the crucial task of training AI models so that they can then solve complex problems. This has helped Nvidia’s profits soar and the stock find its place in the portfolios of many billionaire investors.
But recently two billionaires reduced their positions in Nvidia while betting on another AI stock instead. Steven Cohen, CEO of Point72 Asset Management, reduced his stake in Nvidia shares by 66% in the fourth quarter of last year, while Israel Englander, CEO of Millennium Management, reduced his stake by 45%.
Top tech stocks are among the largest positions in these billionaires’ funds. So it’s clear they’re focused on picking tomorrow’s AI winners. For example, these are two of the most heavily weighted technology stocks in Englander’s fund Microsoft And alphabetCompanies investing in AI.
Which company are Cohen and Englander betting on as a potential AI winner in the long term? It is a player that recently said demand for its AI infrastructure is so great that it is actually outstripping supply. Let’s find out more about this potential AI star who is currently the favorite of these billionaires.
Cohen and Englander agree on this stock
You will probably recognize the name of this company as it has been operating as a leading software and database company for years. I’m talking about oracle (NYSE:ORCL). In the fourth quarter, Cohen opened a new position in Oracle while Englander increased his stake in the tech giant by 138%.
Founded in the late 1970s, Oracle was originally known for its database management system, but has since expanded its offerings significantly. It remains smaller than the competition Amazon and Microsoft in the cloud computing market, but recently, thanks to AI demand, the company has recognized the growth opportunities in cloud infrastructure – and made it its primary focus.
Last quarter, Oracle’s cloud infrastructure revenue rose 49% to $1.8 billion. And total cloud revenue – including software as a service and infrastructure as a service – accounted for 38% of total revenue. The quarter signals a turning point as the company’s total cloud revenue exceeds total license support revenue for the first time.
Oracle’s cloud infrastructure business is driving growth, and as it offers benefits that appeal to users, it could continue to do so. The company says it is cheaper than competitors such as Google Cloud. Oracle also sells a variety of cloud options, such as a platform that allows users to run their own Oracle Cloud. The company even offers multicloud services, so you can use an Oracle service on another public cloud like Microsoft Azure.
Demand exceeds supply
As I mentioned earlier, demand for Oracle’s AI infrastructure services is outstripping supply – even as the company expands existing data centers and opens new ones. Oracle predicts that its Gen2 cloud infrastructure business will continue to be in a “hyper-growth phase” for some time. The company now has 47 public cloud regions worldwide and is building eight more. Twelve of these regions are connected to Azure and more are on the way.
Oracle stands to benefit as the capacity expansion allows it to increasingly respond to growing demand and integrate its earlier acquisition of digital information systems company Cerner.
Should you forget about Nvidia and turn to Oracle? Billionaires Steven Cohen and Israel Englander still own a lot of Nvidia stock, and the company offers solid long-term prospects. Nvidia sells what is currently the most powerful chip, and its research and development resources suggest it could remain at the forefront as it releases new products, such as the Blackwell architecture expected later this year. That means Nvidia shares could have a lot of room to run.
But Oracle, which has gained around 20% over the past year, has some catching up to do in terms of stock performance – and that may be the case given its recent earnings trends and long-term outlook. That makes this top tech stock look pretty cheap at just 20x earnings estimates — and gives you the perfect opportunity to turn your attention away from Nvidia for a moment and follow billionaire investors to Oracle.
Should you invest $1,000 in Oracle now?
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino has positions at Amazon and Oracle. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Nvidia and Oracle. The Motley Fool recommends the following options: long $395 January 2026 calls on Microsoft and short $405 January 2026 calls on Microsoft. The Motley Fool has a disclosure policy.
Forget Nvidia. Billionaires Steven Cohen and Israel Englander are buying this artificial intelligence (AI) stock instead. was originally published by The Motley Fool