Beyond Nvidia: Top Billionaire Investors Accumulate AI Stocks With 970% and 2,000% Surges Since 2023

The artificial intelligence investment boom has extended far beyond semiconductor manufacturers. While Nvidia and Broadcom captured most of the spotlight, several elite hedge fund managers quietly took positions in alternative plays that capitalize on the AI infrastructure expansion. In Q3, leading investors including Ken Griffin, Cliff Asness, Israel Englander, and Steven Cohen added stakes in two companies that have delivered extraordinary returns since January 2023 — gains that rival or exceed many traditional AI stocks.

These billionaire investors, who have consistently beaten S&P 500 returns over the past three years, identified opportunities in overlooked sectors. Their moves reveal a sophisticated investment thesis: the AI buildout requires far more than processing power. It demands cooling systems, data center infrastructure, and analytics platforms to manage the computational complexity.

How Data Center Cooling Became an AI Play: Comfort Systems’ Explosive Growth

Comfort Systems USA (NYSE: FIX) has quietly become one of the biggest beneficiaries of the AI infrastructure boom, with shares climbing 970% since early 2023. The company operates through two main divisions: mechanical services and electrical services, handling HVAC systems, plumbing, and electrical installations across commercial, industrial, and institutional properties.

The real growth driver, however, lies in the data center cooling vertical. As AI infrastructure generates massive heat loads, Comfort Systems has emerged as a critical supplier of both standard air conditioning and specialized immersion cooling systems — advanced technology that directly cools server hardware. Beyond cooling, the company also provides cleanroom ventilation and mechanical systems to semiconductor manufacturers.

The numbers tell a compelling story. In Q3, Comfort Systems reported revenue of $2.4 billion, up 35% year-over-year, while GAAP net income surged 101% to $8.25 per diluted share. More importantly, the company’s revenue backlog increased 66%, signaling robust future growth. Technology sector customers now represent 42% of revenue, jumping from 32% just a year ago — a clear reflection of the AI infrastructure spending surge.

From a valuation perspective, Comfort Systems trades at 52 times earnings. For most companies, that multiple would raise eyebrows. But with earnings expected to grow 39% annually over the next three years, the valuation appears reasonable for a high-growth infrastructure play. Investors watching the AI stocks landscape should seriously consider building a position.

The Analytics Advantage: Why Palantir Remains an AI Stocks Cornerstone

Palantir Technologies (NASDAQ: PLTR) took a different path to AI stocks prominence, posting an astronomical 2,000% gain since January 2023. The company develops advanced analytics platforms designed to help organizations — from government agencies to enterprises — extract insights from complex datasets.

What differentiates Palantir from competitors is its foundational technology: an ontology-based framework that serves as the backbone for decision-making. Unlike conventional analytics platforms focused on reporting and visualization, Palantir’s approach becomes more valuable over time as machine learning models accumulate and analyze more data. The company recently enhanced this capability by launching AIP, an artificial intelligence platform that enables AI agent development and natural language data engagement.

Palantir’s recent financial performance validated the investment thesis. Q4 revenue increased 70% to $1.4 billion — the tenth consecutive quarterly acceleration. Non-GAAP net income jumped 79% to $0.25 per diluted share. The company achieved a Rule of 40 score of 127%, an unprecedented achievement combining growth and profitability metrics that Wall Street rarely sees.

The challenge for Palantir investors is valuation. The stock currently trades at 214 times earnings, an expensive multiple even for a growth company. While Wall Street projects 45% annual earnings growth over three years, the current price requires perfect execution. For those interested in AI stocks with exposure to Palantir, a cautious approach makes sense — a small position is acceptable if you understand the stock could realistically drop 50% without fundamentally altering the long-term investment case.

Evaluating Your AI Stocks Strategy: Risk and Opportunity

Comfort Systems and Palantir represent two distinct paths through the AI stocks opportunity set. Comfort Systems offers more reasonable valuation (52x earnings) with a tangible business model centered on critical infrastructure. Palantir demands faith in expensive growth, with a valuation that requires sustained acceleration.

Both companies boast of billionaire backing from investors who have proven their ability to identify winning positions. Their Q3 accumulation suggests they see significant runway ahead for these AI stocks. However, investors should recognize that valuations matter — even for companies riding powerful secular trends. Comfort Systems appears reasonably priced for entry, while Palantir warrants a more measured, smaller position approach.

The broader lesson: dominant AI stocks plays exist well beyond the obvious semiconductor names. Infrastructure providers and sophisticated analytics companies play equally critical roles in the AI infrastructure build. Identifying and investing in these alternative plays could prove just as rewarding as chasing Nvidia and Broadcom.