Billionaire Wall Street investor Bill Ackman has called on investors to stop “booing” the massive artificial intelligence spending plans of tech giants, arguing that the ambitious projects by Amazon, Meta, and Alphabet will ultimately drive significant valuation gains. Ackman, the manager of the London-listed FTSE 100 firm Pershing Square Holdings, made the remarks in his annual letter to shareholders following a sharp decline in tech stocks recently, which some analysts have attributed to fears of an “AI cash bonfire.”
Ackman highlighted that these companies, which he collectively refers to as “The Three,” have a proven track record of allocating capital intelligently. He emphasized that the AI investments, including the construction of extensive new data centers, are in response to surging demand and internal use cases offering high returns. “When a business you own, managed by a management team you trust, announces a large increase in capital spending due to increased demand for its products or services, you should be applauding rather than booing,” Ackman wrote.
Previously focused on consumer sector investments, Ackman has shifted substantial stakes into Amazon, Meta, and Alphabet over the past two years, citing their exceptional growth potential compared with the broader S&P 500. Despite recent market jitters, he insisted that the financial strength of these firms allows them to pursue AI initiatives comfortably without jeopardizing their stability.
Ackman also expressed optimism about the broader US economic outlook, predicting 2026 will be a strong year. He pointed to factors including $1.2 trillion in Biden-backed infrastructure projects, tax incentives from former President Trump’s legislative initiatives, a pro-business stance encouraging mergers and acquisitions, and deregulation measures led by Treasury Secretary Scott Bessent. Mid-term election dynamics, he noted, may further motivate the administration to deliver on economic promises.
Despite Pershing Square’s robust 2025 performance—posting a 20.9 percent increase in net asset value per share, outperforming the S&P 500’s 17.9 percent total return—the fund has had a challenging start to 2026, recording a 5.2 percent loss in the first six weeks, while the S&P posted a 1.5 percent gain. Ackman, known for his macroeconomic bets such as predicting interest rates would remain high, has also faced scrutiny for mistiming investments, notably his $1 billion Netflix exit in 2022.
Ackman’s message is clear: investors should see AI spending by the leading tech companies as a signal of growth and opportunity, rather than as a reason for alarm, as these firms position themselves to capitalize on the next wave of technological innovation.
