Nvidia Rises 800%; Billionaires Shift Focus to Amazon AI
Investors, including billionaires, have seen substantial returns from Nvidia (NASDAQ: NVDA), which surged over 800% from early 2023 to the end of the year, driven by increasing demand for its products. With the AI market expected to exceed $2 trillion in a few years, Nvidia stands to benefit further.
However, it’s notable that some top investors are currently favoring another AI giant over Nvidia. Billionaires like David Tepper of Appaloosa Management, Philippe Laffont of Coatue Management, and Stephen Mandel Jr. of Lone Pine Capital have included this company among their top holdings.
This firm, similar to Nvidia, has generated billions in AI revenue and is likely to continue profiting from the AI boom.
Image source: Getty Images.
Billionaires Favor Technology Stocks
These billionaires hold substantial stakes in technology stocks, evidencing their belief in the AI revolution. Tepper and Mandel own three Magnificent Seven stocks in their top 10 holdings, while Laffont has four.
Which company has captivated these technology investors? It is none other than AI leader Amazon (NASDAQ: AMZN). In Q1, Amazon was the third-largest stock holding in Tepper’s $8.3 billion portfolio, the second-largest in Laffont’s $22 billion portfolio, and the third-largest in Mandel’s $11 billion fund.
- Tepper owns 2,510,000 shares of Amazon, making up 5.7% of his portfolio.
- Laffont holds 10,753,808 shares, representing 9.02% of his portfolio.
- Mandel has 4,352,740 shares, comprising 7.15% of his portfolio.
This information comes from the billionaires’ 13F filings, which managers of over $100 million must submit quarterly to the SEC.
Is Amazon the Right AI Investment for You?
The question arises: should you also view Amazon as a strong AI investment? While billionaires have shown investment proficiency, their choices may not align with your investment strategy or risk tolerance. Evaluate these factors before proceeding.
Amazon is widely recognized for its e-commerce dominance, generating substantial annual revenue globally. Its extensive fulfillment network and popular subscription service, Prime, create a competitive edge.
Moreover, Amazon is advancing within the AI sector, enhancing its e-commerce operations and providing AI products via its Amazon Web Services (AWS) division. Recently, AWS achieved a $117 billion annual revenue run rate, reflecting significant growth from this venture.
Amazon’s Strategic Position
As the leading cloud services provider, AWS is uniquely positioned to capture increasing demand as clients pursue AI initiatives, with ready access to essential resources, including top chips like Nvidia’s.
The ongoing AI development positions AWS to gain further as businesses integrate AI into their operations.
Amazon has a proven record of earnings growth and has adeptly navigated challenges, such as cost adjustments during inflation without losing momentum. This capability illustrates Amazon’s strength in capitalizing on the AI boom while also providing security through its established, profitable e-commerce and cloud segments.
Should You Invest $1,000 in Amazon Now?
Consider this before purchasing Amazon stock:
The Motley Fool Stock Advisor analyst team identified their top 10 stocks to buy now, and surprisingly, Amazon was not included. These ten stocks could potentially offer significant returns in the years ahead.
Consider Netflix, for example. If you invested $1,000 when it made the list in December 2004, you’d have $651,049 today!*
Or Nvidia. An investment of $1,000 when it appeared on the list in April 2005 would be worth $828,224 today!*
The Stock Advisor’s average return is 979%, significantly outperforming the S&P 500’s 171%. Don’t miss their latest top 10 list—available upon joining Stock Advisor.
*Stock Advisor returns as of June 2, 2025
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
