Ackman Sells 95% of Alphabet Stake as AI Investors Shift to Corning and MediaTek
Bill Ackman’s fund sold 95% of its Alphabet stake in Q1 to boost Microsoft and Amazon holdings, cutting institutional exposure to Google. AI investors are shifting from Nvidia-centric infrastructure to Corning’s fiber-optic growth and MediaTek’s ASICs over TSMC’s 46% YTD gain, a trend that could affect Alphabet’s hardware sourcing.
1. Ackman’s Stake Reduction
Pershing Square Capital Management sold 95% of its Alphabet stake during Q1, redirecting capital into Microsoft and Amazon positions. The move marks a significant reduction in institutional support for Google shares and reflects Ackman’s view that SaaS and cloud businesses offer superior risk-adjusted returns.
2. Corning’s AI-Driven Growth
Corning’s fiber-optic cables unit has surged 259% over the past year as AI data-center demand accelerates. Its Q1 net income jumped 93% year-over-year, and Nvidia is underwriting the construction of three new Corning production facilities to expand capacity.
3. Broadening AI Chip Market
TSMC’s shares are up 46% year-to-date but trail 140% rallies in MediaTek and Samsung as investors seek hardware beyond Nvidia’s flagship GPUs. MediaTek’s development of application-specific integrated circuits for Alphabet and Samsung’s memory leadership are drawing increased fund allocations.
4. Implications for Alphabet
Reduced fund exposure and a diversifying AI hardware ecosystem may pressure Alphabet’s stock demand and alter its infrastructure sourcing strategy. Shifts toward Corning and MediaTek technologies could influence Google’s data-center costs and supplier negotiations moving forward.