Prominent hedge fund managers, including David Tepper and Seth Klarman, are significantly increasing their Amazon holdings, viewing the tech giant as an undervalued play within the artificial intelligence sector.
Key Points
- Appaloosa Management and Baupost Group have made Amazon their single largest stock holding.
- Pershing Square, led by Bill Ackman, built a $2.4 billion Amazon position over the past year.
- Sanders Capital doubled its stake to 29.8 million shares, valued at approximately $6.2 billion, in early 2026.
- Amazon’s cloud division, AWS, recently reported its fastest growth rate in 15 quarters.
- Analysts estimate AWS alone accounts for roughly half of Amazon's $2.5 trillion total market valuation.