Billionaire "sets sights on" Dell Technologies, Inc. Class C (DELL.US) to expand partnership with NVIDIA Corporation (NVDA.US) in AI server business, potentially increasing by 50%.

According to a list of the top 30 best AI stocks in the eyes of billionaires recently released by Insider Mondey, Dell Technologies, Inc. Class C Technology (DELL.US) is listed. This stock is favored by billionaires and hedge funds, and institutions like Morgan Stanley also see positive development in its future thanks to the AI trend. In the past few months, the outlook for the US economy has been optimistic due to the AI trend. However, the recent tariff policy implemented by Trump to support American manufacturing has dampened this optimism. This series of measures quickly impacted the global stock market, with major indices spiraling downwards. The latest round of tariff hikes has caused trillions of dollars in market value of the "Big Seven" to evaporate. The Big Seven dominate the US benchmark indices and have made significant investments in the field of AI. The latest report from market research company International Data Corporation (IDC) points out that if tariffs continue, it is expected to cause supply chain disruptions and inflation challenges in multiple markets, including the IT industry. According to Reuters, global hedge funds led by billionaires have reduced high-risk investments and sought safe havens before Trump announced the new tariffs last week. The report, based on data collected by investment bank Goldman Sachs Group, Inc., shows that hedge funds had been withdrawing investments from emerging markets in Europe and Asia before the announcement of new tariffs. Morgan Stanley's research also confirms this view, estimating that as of last weekend, the net leverage of long-short funds in the US had rapidly decreased from over 50% at the beginning of the year to 37%, close to historical lows. Net leverage measures the difference in asset value relative to its positions, including borrowing, between long and short positions. JPMorgan also pointed out in a recent report that hedge funds' net leverage ratio had fallen to near the lowest level since the end of 2023. The lower the net leverage ratio, the more conservative the hedge funds' position. Given the uncertainty of tariffs, investors expect significant volatility in risk assets in the short term and advise to continue to maintain a defensive position. These developments contrast sharply with the position of billionaires. In the past few months, they have often hailed AI as the next revolutionary technology shaping the future economy, industry, and society. Influential billionaires have repeatedly advocated for substantial investments in AI, believing it could bring significant economic value. This optimistic view is based on research from institutions like McKinsey, which predicts that AI could add up to $4.4 trillion in value to the global economy annually in the coming years. Investors are expected to hold shares in technologies that support the next generation of global economic growth. For billionaire investors, AI is not just a diversification strategy, but also an opportunity to influence the direction of powerful new technology development. They often strategically hold stocks to influence product development and scaling processes, and have heavily invested in some large companies. Finance website Insider Monkey referenced an internal database about AI companies and selected the top 30 stocks with the most billionaire investors, which are also popular among hedge funds. Dell Technologies, Inc. Class C Technology is favored by numerous billionaire investors and hedge funds, with 63 hedge funds holding its stock and 11 billionaire investors holding it, with a combined market value of $258 million. Dell Technologies, Inc. Class C Technology engages in the design, development, manufacturing, marketing, selling, and technical support of various integrated solutions, products, and services. The company has entered the AI field by collaborating with hyperscale data center operators in the server sector and producing personal computers with AI capabilities. Recently, Dell Technologies, Inc. Class C announced a partnership with NVIDIA Corporation (NVDA.US) to expand its AI product lineup by introducing new servers, edge computing products, workstations, solutions, and services. In the past two years, the company's AI server business has grown rapidly, with revenue starting from zero and climbing to $10 billion. Morgan Stanley predicts that by the calendar year 2025, the revenue of Dell Technologies, Inc. Class C in this business will grow by at least 50%, meaning this relatively new business segment will account for 15% of the company's total revenue.