Billionaire Bill Ackman Just Loaded Up on This Powerhouse AI Stock. Should You?

By Keith Speights – Feb 17, 2026 at 3:45AM ESTKey PointsAckman's Pershing Square hedge fund has invested 10% of its capital in Meta Platforms.The billionaire views Meta as a bargain because of its AI growth potential.He isn't concerned about Meta's significant increase in AI-related spending.We’re bullish on these 10 stocks ›NASDAQ: METAMeta PlatformsMarket Cap$1.6TToday's Changeangle-down(-1.48%) $9.63Current Price$640.18Price as of February 13, 2026 at 3:59 PM ETThe hedge fund manager is betting heavily on what he believes is "one of the world's greatest businesses."Billionaire Bill Ackman doesn't buy many stocks. When he invests heavily in a new position, it's worth noting. Ackman did so recently, with his Pershing Square Capital Management hedge fund announcing that it has invested roughly 10% of its capital in Meta Platforms (META 1.48%). Pershing Square exited its positions in Chipotle Mexican Grill (CMG +1.26%) and Hilton Worldwide Holdings (HLT 2.42%) to free up cash to fund the significant investment in Meta. This seemingly signals a shift in Ackman's mindset, from relatively stable consumer discretionary stocks to high-octane artificial intelligence (AI) growth stocks. But why is the ultra-wealthy hedge fund manager especially loading up on Meta? And should you buy this powerhouse AI stock, too? Image source: Getty Images. An AI bargain? Ackman tends to follow a value-investing approach in managing Pershing Square. At first glance, Meta might seem to be a surprising pick for him. After all, the stock trades at over 21 times forward earnings. That multiple doesn't scream "bargain." However, Ackman has a different take. Pershing Square's 2026 annual investor presentation stated, "We believe Meta's current share price underappreciates the company's long-term upside potential from AI and represents a deeply discounted valuation for one of the world's greatest businesses." The hedge fund noted in the investor presentation that Meta currently dominates the "secularly fast-growing digital advertising space." Meta's AI initiatives are enabling it to boost user engagement and help advertisers reach potential customers with personalized ads. Ackman also recognizes that Meta could have significant growth opportunities with its popular AI smart glasses. Pershing Square noted in its investor presentation that the company has the "potential to unlock new use cases and engagement modes," citing wearables as a key area of opportunity. The $135 billion elephant in the room Some Wall Street analysts are nervous about the "$135 billion elephant in the room" with Meta. I'm referring to the company's 2026 capital expenditure guidance of up to $135 billion. Much of this capex will be directed toward increased investment in Meta's superintelligence development efforts. Is Ackman concerned about the surge in capital spending? Nope. Pershing Square's investor presentation addressed the issue head-on, stating, "We believe concerns around Meta's AI-related spending initiatives are underestimating the company's long-term upside potential from AI." Ackman believes that Meta has the financial flexibility to increase its AI investments without causing problems. Its balance sheet remains exceptionally strong. The company's core advertising business is a cash cow. His hedge fund's investor presentation explained his thinking, stating that Meta is "well-positioned for long-term earnings growth after [its] planned spending ramp in 2026." Meta has provided ample reason for Ackman's confidence. Despite increased AI-related capital expenditures this year, the company still expects solid year-over-year operating income growth in 2026. ExpandNASDAQ: METAMeta PlatformsToday's Change(-1.48%) $-9.63Current Price$640.18Key Data PointsMarket Cap$1.6TDay's Range$634.61 - $651.3852wk Range$479.80 - $796.25Volume889KAvg Vol17MGross Margin82.00%Dividend Yield0.33% Should you buy Meta Platforms stock, too? Pershing Square's investment in Meta Platforms is already paying off. The stock jumped 11% in 2025 after the hedge fund initiated its position. While Meta's share price has been volatile so far this year, that's more reflective of the underlying market dynamics than issues with the company itself. Ackman isn't the only Meta bull. Of the 67 Wall Street analysts surveyed by S&P Global (SPGI +3.21%) in February, 62 rated the stock as a "buy" or "strong buy." The average 12-month price target for Meta reflects a potential upside of around 34%. Should you jump on the Meta bandwagon along with Ackman? If you believe an AI bubble is about to burst, probably not. However, if you think (as I do) that Meta is poised to deliver sizable long-term gains from its AI investments, following in the billionaire's footsteps could pay off handsomely.Read NextFeb 16, 2026 •By Adam LevyBillionaire Bill Ackman Sold Hilton Worldwide And Bought This Artificial Intelligence (AI) Stock Up 1,650% Since Its IPOFeb 16, 2026 •By Jennifer SaibilBillionaire Bill Ackman Reveals New Position in This Top Artificial Intelligence (AI) StockFeb 13, 2026 •By Billy DubersteinBillionaire Bill Ackman Just Sold All His Chipotle Stock To Buy This AI Stock Up 1,660% Since Its IPOFeb 12, 2026 •By Adria CiminoStock-Split Watch: Is Meta Platforms Next?Feb 12, 2026 •By Neil RozenbaumBillionaire Investor Bill Ackman Just Bought A New Stock and It's My #1 PositionFeb 12, 2026 •By Danny Vena, CPABillionaire Bill Ackman Just Invested 10% of Pershing Square Capital Management's $20 Billion Portfolio in 1 Unstoppable Artificial Intelligence (AI) StockAbout the AuthorKeith Speights is a contributing Motley Fool healthcare analyst covering publicly traded companies across pharmaceuticals, biotechnology, medical devices, technology, and marijuana. Prior to The Motley Fool, Keith was CEO of Constant Care Technology, a healthcare technology company; vice president of American HealthTech, a healthcare software company; and a director of operations for Blue Cross Blue Shield of Mississippi, a health insurer. He holds a B.S. in Industrial Engineering from Mississippi State University.TMFFishBizStocks MentionedMeta PlatformsNASDAQ: META$640.18 (1.48%) $9.63Chipotle Mexican GrillNYSE: CMG$36.29 (+1.26%) $+0.45S&P GlobalNYSE: SPGI$409.95 (+3.21%) $+12.75Hilton WorldwideNYSE: HLT$314.36 (2.42%) $7.81*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.