Several prominent hedge fund billionaires expanded their exposure to artificial intelligence through third-quarter purchases of software and infrastructure companies, according to recent regulatory filings. Citadel's Ken Griffin and AQR Capital Management's Cliff Asness established new positions in data analytics firm Palantir Technologies, while Millennium Management's Israel Englander and Point72's Steven Cohen added building services contractor Comfort Systems USA.
The moves highlight how institutional investors are diversifying their AI bets beyond chipmakers like Nvidia and Broadcom. Since January 2023, Palantir shares have skyrocketed approximately 2,000%, while Comfort Systems has surged roughly 970%.
"These purchases reflect a strategic shift toward the essential enablers of AI implementation," said a market analyst. "While semiconductors provide the computational power, companies like Palantir develop the software frameworks, and firms like Comfort Systems build the physical infrastructure required for data center operations."
Palantir provides AI-powered data analytics platforms to government and commercial clients, recently emphasizing its Artificial Intelligence Platform (AIP) for developing autonomous "AI agents." The stock trades at about 214 times earnings. Comfort Systems specializes in designing and installing HVAC and electrical systems for data centers, including advanced cooling technologies critical for heat-intensive AI operations, with shares trading around 52 times earnings.
In premarket trading Monday, Palantir advanced 4.5% while Comfort Systems jumped 7%. Robinhood Markets, which has been developing AI tools for retail investors, surged 14%. Nvidia and Broadcom each gained approximately 7%.
Investors should note that 13F filings provide only a quarterly snapshot of institutional holdings and may not reflect current positions. The elevated valuations of these AI-related companies also present risks if corporate spending on artificial intelligence projects slows or data center construction timelines extend.
