Billionaire Chase Coleman Holds Over 10% of His Investments in an AI Stock Set for 2026

Following billionaires and their stock holdings can provide a helpful reality check for investors. This process has become easier thanks to a rule from the Securities and Exchange Commission, which requires asset managers with over $100 million in assets to disclose their quarter-end holdings. This data becomes public via Form 13F 45 days after the quarter closes, meaning the most recent insights about these billionaires’ portfolios date back to September 30, 2025.

The goal is to identify fund managers who take a long-term view, rather than those who frequently buy and sell. A prominent example is billionaire Chase Coleman of Tiger Global Management. In the third quarter, four of Coleman’s five major holdings showed no trading activity, indicating his strategy isn’t about quick market moves. Notably, around 10.5% of his portfolio is in artificial intelligence (AI) stocks, which have been performing well over time. microsoft (MSFT).

Microsoft is both a major investment for Coleman and the largest part of his portfolio. But is it a good purchase for you? Let’s dive in.

Microsoft’s business model is thriving in today’s AI-driven world

First, it’s worth exploring how Microsoft’s stock price has fared since September 30.

Microsoft’s stock has actually decreased in value since we last learned of Coleman’s investment. Given that he’s a long-term investor, it’s unlikely that any recent downturn would sway his decision to keep a substantial stake in Microsoft.

This situation could reassure investors that Microsoft might be a worthwhile buy right now.

Microsoft’s investment strategy heavily focuses on its AI initiatives. Instead of creating its own generative AI models, Microsoft acts as an enabler, allowing developers to leverage the most suitable AI models for their purposes. With offerings like Azure Foundry, which includes models from OpenAI and others, Microsoft’s cloud platform stands out and reflects positively in its financial outcomes.

In the first quarter of fiscal 2026, which ended on September 30, 2025, Azure reported a revenue increase of 40%, making it the fastest-growing cloud service among major competitors. If Azure maintains this momentum, it’s likely that the stock will continue to perform well.

Another promising area for Microsoft is its Copilot product. By embedding generative AI into its Office software, Copilot has significantly increased uptake among current customers, reporting 17% growth in the Microsoft 365 commercial segment and 26% in the consumer segment during that same quarter. However, there are mixed opinions on the value it delivers. While some users find it beneficial, many do not, which raises concerns that some businesses might scale back their licenses in the future, potentially impacting Microsoft negatively.

The overall success of Microsoft will hinge on how well its AI products are received. Currently, the outlook is generally positive, but any shift in perception could affect the stock’s performance.

Microsoft stock is not cheap

Despite Microsoft’s stock price declining since the last quarter, it still carries a high valuation, trading at a forward P/E ratio of 30. That’s certainly not low.

This valuation is fairly standard for a big tech company, and it seems reasonable as long as Microsoft continues to report quarterly sales growth in the mid-teens. However, if growth starts to taper off, the stock might struggle to keep up with the market trends in 2026.

Analysts anticipate about 16% sales growth for fiscal 2026 and around 15% for fiscal 2027. Should this prediction hold true, Microsoft could outshine the market and validate Coleman’s investment. Conversely, if growth slows unexpectedly, the stock might drop. I believe Microsoft’s trajectory will resemble its past performance, making it a solid choice for the next few years, even though extraordinary returns may not be in the cards.