The report breaks the investment opportunity into three layers: (1) the enabling layer, (2) the intelligence layer, and (3) the application layer. Listed below are three brilliant AI stocks (one for each layer) that billionaires were buying in the second quarter.

Despite some concern about a bubble in the artificial intelligence (AI) sector, AI stocks are once again climbing near all-time highs following the Federal Reserve's decision to lower benchmark interest rates.

Some of the more mainstream artificial intelligence (AI) applications reside in workplace productivity software, self-driving cars, and cloud computing. One use case that often goes overlooked is how AI is used in the defense sector.

At 40.2 times forward earnings, Amazon is by no means a cheap stock. This is likely the result of investors being excited about cloud computing and the effect AI will have on it. It also is a recognition that Amazon's commerce businesses could become far more profitable as it focuses on becoming more efficient.