Gates Foundation Bets on AI: Over 30% of Portfolio in Microsoft and Schrödinger Stocks
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Bill Gates has nearly 35% of his foundation's portfolio invested in two AI stocks Microsoft and Schrödinger. Microsoft makes up almost 34%.
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Microsoft is benefiting from AI initiatives like OpenAI's GPT-4 integration and Azure AI cloud platform. Over half of Fortune 500 use Azure AI.
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Schrödinger uses AI/machine learning to predict molecular structures to aid drug development. Gates Foundation is the 2nd largest owner with 11% stake.
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Analysts recommend buying both Microsoft and Schrödinger, with upside potential of 7% and 45% respectively.
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But neither are "no-brainer buys" due to high valuations - Microsoft trades at over 31x forward earnings, while Schrödinger isn't yet profitable.