Philippe Laffont, a billionaire hedge fund manager, leads Coatue Management, a tech-centric hedge fund managing $58 billion in assets.

Artificial intelligence (AI) is a major driver of the current market rally, enhancing productivity and automating tasks across various industries.

Generative AI is projected to contribute between $2.6 trillion and $4.4 trillion annually to the global economy, underscoring the lucrative opportunities within the sector.

Laffont predicts that AI will be a key investment theme over the next decade and has significantly invested in AI stocks, with his top five holdings reflecting this focus.

Coatue's largest AI holding is Meta Platforms, which comprises 8.2% of its portfolio, with over 4.2 million shares valued at more than $2.1 billion.

Meta has effectively leveraged AI for content delivery and advertising, and its stock is considered inexpensive at 24 times forward earnings.

Amazon is Laffont's second-largest position, accounting for 8.1% of holdings, with approximately 10.8 million shares worth nearly $2.1 billion, reflecting its extensive use of AI in e-commerce and cloud services.

Nvidia, representing 6.6% of holdings, is pivotal in AI processing and has seen significant stock growth, with Laffont owning about 13.8 million shares valued at $1.7 billion.

Microsoft, Coatue's fifth-largest holding at 6.4%, integrates AI across its products and services, particularly through its Azure Cloud platform and AI-powered tools like Copilot, totaling nearly $1.7 billion in shares.

Taiwan Semiconductor Manufacturing (TSMC) ranks third in Coatue's portfolio at 7.7%, with 11.4 million shares valued at approximately $2 billion, benefiting from high demand for advanced chips used in AI.

Each of Laffont's top five AI stocks has outperformed the S&P 500 since the AI revolution began, indicating strong potential for continued growth.