Key Points
Bill Ackman has invested approximately 15% of his $2.4 billion Pershing Square portfolio in Microsoft (NASDAQ: MSFT), a strategic decision aimed at capitalizing on the potential of the company’s AI future. Ackman believes the market is undervaluing Microsoft’s substantial stake in OpenAI, estimated to be worth around $200 billion, equivalent to approximately 7% of Microsoft’s total market cap.
Pershing Square initiated the Microsoft position in February 2026, acquiring shares at approximately 21 times forward earnings, taking advantage of the stock’s dip following its fiscal second-quarter report. However, Ackman also warns that the company’s significant capital expenditure plans—around $190 billion to enhance AI and cloud capabilities—pose risks if demand does not meet expectations.
For investors considering Microsoft, alignment with Ackman’s thesis about long-term AI growth is crucial, particularly as competition in AI infrastructure intensifies. A concentrated position may suit hedge fund strategies but could present diversification challenges for individual investors.
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