Bill Ackman Built a $2.4 Billion Stake in Microsoft, Calling It a "Core Holding" Bought at a "Highly Compelling Valuation." Here's Why He's Betting Big on Big Tech.

Billionaire investor Bill Ackman's hedge fund, Pershing Square Capital Management, has established a multi-billion-dollar position in Microsoft (MSFT), making it the firm's second-largest tech holding. The position was initially disclosed in May after Pershing Square purchased over 5.65 million shares valued at nearly $2.1 billion by the end of March. The firm subsequently trimmed its Alphabet position to expand its Microsoft stake further, reaching over 6.2 million shares worth approximately $2.3 billion by the end of June. The substantial investment aligns with Ackman's heightened focus on the technology sector, where holdings including Amazon, Meta Platforms, and Uber previously comprised 40% of the portfolio. Ackman highlighted that tech sectors, particularly semiconductors and IT hardware, contributed heavily to broad market performance, driven by surging enterprise demand and accelerating artificial intelligence integration. Microsoft's strong free cash flow generation, dominant competitive moat, and low leverage meet Pershing Square's core investment criteria, positioning the software giant as a foundational long-term holding.