Microsoft has been an OK stock pick in 2025. While it’s up around 15% so far in 2025, which woudl normally be considered triumphant, the S&P 500 is up more than 16%. This places Microsoft as a market loser, which nobody wants to own. However, the tides could shift in 2026, and Microsoft could be one of the best artificial intelligence (AI) stocks to own.
Two billionaires are incredibly confident in Microsoft’s potential and loaded up on its stock during the third quarter. Is there something they know that we don’t for 2026?
The two billionaires I follow who loaded up on Microsoft stock during the third quarter were the legendary Peter Thiel and daniel Loeb at Third Point. Thiel is a legend on Wall Street, as he was one of the founders of PayPal and Palantir Technologies. He was also one of the first outside investors of Facebook (now Meta Platforms). When he makes a move, investors should pay attention, as he has a phenomenal track record.
During Q3, Thiel sold off a hefty amount of Tesla stock and all of his Nvidia stock. He then used some of those proceeds to take a $25 million stake in Microsoft, now his second-largest holding. That’s a big deal, and could indicate that he believes Microsoft is due for a strong 2026.
Loeb at Third Point more than doubled its stake in Microsoft during Q3,and it now accounts for its third-largest position at 6.9% of the portfolio. that’s a huge move, and signals something big could be coming.
Other billionaires own Microsoft stock, like Chase Coleman at Tiger Global Management. Although he didn’t buy any Microsoft stock in Q3, it’s his portfolio’s largest position at a 10.5% weighting.
Clearly, Microsoft stock is incredibly popular among billionaires, but why is that the case?
Microsoft has delivered strong growth as the advent of artificial intelligence.
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