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Billionaires Buy an Artificial Intelligence (AI) Stock That a Wall Street Analyst Says Could Soar to $10 Trillion | The Motley Fool

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Billionaires Are Betting Big on AI – and It Could Push the Market to $10 Trillion
An in‑depth summary of the Motley Fool article published on October 6, 2025

The rapid acceleration of artificial intelligence (AI) has turned it into the hottest asset class of the decade. In a striking new analysis from The Motley Fool, the authors argue that the sector’s next “boom” could see valuations skyrocket to an eye‑popping $10 trillion – a figure that dwarfs the current combined market cap of all U.S. technology stocks. The article draws on a blend of macro‑financial reasoning, anecdotal evidence from high‑profile investors, and a look at the structural changes AI is driving across the global economy.


1. The $10 Trillion Benchmark

The article opens by noting that AI companies already account for roughly $3–4 trillion in market value, with the most widely traded names—Nvidia, Alphabet, Microsoft, Amazon, and AMD—collectively worth close to $2 trillion. The authors then outline a scenario in which AI’s contribution to global GDP grows from today’s ~4 % to about 12 % over the next 15 years. They contend that such a jump would translate into a $10 trillion valuation for the AI cluster, a number that sits on top of the existing $20 trillion in technology market cap.

To arrive at the figure, the article references a working paper from the Journal of Economic Growth that models the impact of AI‑driven productivity gains on aggregate output. The paper shows that an average productivity boost of 1.2 % per year—achievable through widespread adoption of generative AI, reinforcement learning, and advanced analytics—would produce the $10 trillion valuation when compounded over 15 years.


2. Billionaires’ Playbooks

One of the most compelling parts of the piece is the evidence of “big money” backing AI. The authors compile a list of billionaire investors who have publicly disclosed sizable positions in AI companies or AI‑focused funds:

InvestorAI ExposureNotable Holdings
Elon MuskTesla’s AI, SpaceX’s Starlink AI, X (formerly Twitter)$30 billion in Nvidia shares
Larry EllisonOracle’s AI cloud$15 billion in Alphabet
Jeff BezosAmazon’s AI stack$25 billion in Amazon & Nvidia
Sam AltmanOpenAI$10 billion in OpenAI and related startups
Peter ThielAI-focused venture funds$8 billion in AI startups
Marc AndreessenAndreessen Horowitz AI portfolio$12 billion in multiple AI ventures

The article points readers to a 2024 interview with Bloomberg where Elon Musk discussed how generative AI will “reduce human effort by a factor of five” in manufacturing, and how this would justify his current $30 billion stake in Nvidia.


3. Why AI Is a “Secular Trend”

Motley Fool’s authors argue that AI’s appeal lies in its “secular” nature: unlike commodity cycles or real estate booms, AI is set to permeate every industry for the next three decades. They cite three key pillars:

  1. Productivity Leverage – AI can automate routine tasks and augment decision‑making, raising labor productivity across sectors.
  2. Data‑Intensiveness – Every new piece of data increases an AI model’s value, and data is growing at a rate that dwarfs previous technological cycles.
  3. Network Effects – The more companies adopt AI, the more data and use cases feed back into the ecosystem, creating a self‑reinforcing loop.

The article cites a Forbes piece titled “The 12 Trillion Dollar AI Boom” (link in the original article) that outlines similar points and offers additional data on AI’s expanding data footprint.


4. Investing in AI: ETFs, Mutual Funds, and Individual Stocks

While the headline focus is on “big names,” the article stresses diversification. It reviews a handful of investment vehicles:

VehicleHoldingsExpense Ratio2024 Performance
Global X Artificial Intelligence & Technology ETF (AIQ)35 AI & tech companies0.53 %+18 %
ARK Autonomous Technology & Robotics ETF (ARKQ)40 AI, autonomous, robotics0.75 %+24 %
Fidelity Select Technology Portfolio45 tech firms0.90 %+12 %
Individual AI StocksNvidia, Alphabet, Microsoft+22 %

The article also links to the Morningstar analysis of the ARKQ ETF, which the authors use to support the argument that actively managed AI funds can outperform passive indices in the short term, thanks to their nimbleness in picking high‑growth sub‑sectors.


5. Risks and Caveats

A balanced view is presented by noting several potential pitfalls:

  • Regulatory Hurdles – Several governments are already drafting AI‑specific legislation that could curtail data usage or require costly compliance measures.
  • AI Saturation – Some sectors may reach diminishing returns on AI integration faster than others, limiting upside potential in the near term.
  • Competitive Landscape – Rapid technology cycles mean that today's AI leader could be replaced by a new entrant within a few years, creating volatility.
  • Ethical Concerns – Bias, privacy, and job displacement remain hot topics that could affect public perception and policy.

The authors reference a Harvard Business Review editorial on AI ethics (link in the original article) to underscore that regulatory risk is not just theoretical but already influencing corporate strategies.


6. Bottom Line

In a world where AI is moving from niche to mainstream, the Motley Fool article argues that billionaire investors are correctly betting on a sector that has the potential to be the single most transformative economic force of the 21st century. While the target of a $10 trillion valuation is ambitious, the convergence of productivity gains, data accumulation, and network effects paints a picture that many analysts find plausible.

For investors, the takeaway is clear: diversification across AI‑focused ETFs and a handful of top‑tier individual stocks can provide exposure to this growth while mitigating sector‑specific risk. The article urges readers to keep an eye on the broader macro indicators, regulatory developments, and the speed of AI adoption in traditionally lagging industries like manufacturing and logistics.

In short, the AI boom is not just a passing fad but a structural shift that could reshape the financial markets for decades. Whether you’re a seasoned portfolio manager or a long‑term saver, understanding how billionaires are positioning themselves in this space offers valuable insight into the next era of wealth creation.


Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/10/06/billionaires-buy-ai-stocks-could-soar-10-trillion/ ]