We recently published a list 30 best AI shares to buy according to billionaires. In this article we will take a look at where Arm Holdings PLC (Nasdaq: poor) stands against other best AI shares to buy according to billionaires.
Optimism around the economy of the United States in recent months, largely as a result of the AI Hype, has been filled in by recent measures that the Trump administration has taken to strengthen US production. These measures, largely in the form of obscene rates imported into the US from abroad, with a special focus on China, have hit global shares, resulting in a downward spiral for large indexes. The latest tariff increase has trillions in the market capitalization of the Magnificent Seven, a group of seven companies that dominate the Benchmark -American indexes and invested heavily in AI. Latest reports from the IDC market research agency indicate that if the rates remain in place, they are expected to cause the disturbances of the supply chain and inflationary challenges in various markets, including the IT sector. According to a report from Reuters news agency, worldwide hedge funds, dominated by billionaires, has scaled back their risky bets and requested safety before Trump introduced new rates last week.
This report was based on data collected by Investment Bank Goldman Sachs. According to the data, hedge funds have been withdrawn from bets in emerging markets of Europe and Asia prior to the announcement of new rates. Research by investment bank Morgan Stanley, as seen by Reuters, also reflects these feelings. Morgan Stanley estimates that the net leverage of the US quickly fell to 37%, just shy of historical lows, at the end of last week, of more than 50% at the start of the year. Net Leverage measures the difference between the long and short positions of a fund at the value of what the possession, including loans. JPMorgan also noted in a recent report that the net leverage of hedge funds has fallen around the lowest since the end of 2023. The lower the net leverage, the more conservative the position of a hedge fund. Investors expect considerable volatility on risk assets in view of the tariff insurtions and suggest a continuous risk-off attitude.
Read more about these developments by gaining access 10 Best AI Data Center shares And 10 buzzing AI shares according to Goldman Sachs.
The latest developments represent a reversal of positions of billionaires who have often praised AI in recent months as the next transformative technology that would form the future of economies, industries and society. Influential billionaires have repeatedly advocated investing in AI for the enormous economic value it promised. This bullish thesis was based on research by companies such as McKinsey who predicted that AI could yield up to $ 4.4 trillion per year to the global economy in the coming years. For investors, this translated into an opportunity to have interests in technologies that can support the next generation of global growth. For billionaire investors, AI also represented both a diversification strategy and an opportunity to influence the direction of a powerful new technology. These investors often take strategic commitment with which they can form product development and scale. Some of the largest companies on which these investors have made huge bets are discussed in detail below.
