Billionaire fund managers increase stakes in Amazon amid AI boom

Some of the most respected names in hedge fund management are making the same bet. They think Amazon is cheap.

That sounds counterintuitive for a company worth $2.5 trillion, but David Tepper’s Appaloosa Management, Seth Klarman’s Baupost Group, Al Gore’s Generation Investment Management, and Sanders Capital have all been building larger positions in the stock. For both Tepper and Klarman, Amazon has become their single largest portfolio holding.

The numbers behind the conviction

Appaloosa Management nearly doubled its Amazon stake in Q1 2026, increasing its position by roughly 98%. The fund acquired approximately 2.14 million additional shares, bringing its total Amazon exposure to around $900 million. That makes AMZN about 15% of Appaloosa’s $5.93 billion portfolio.

Klarman’s Baupost Group wasn’t far behind. The famously cautious value investor raised his Amazon position by 47%, bringing the total to approximately 3.12 million shares valued between $650 million and $731 million. Amazon now represents about 13% of Baupost’s portfolio.

Generation Investment Management and Sanders Capital have also been adding to their positions, though public 13F filings suggest their activity has been more measured compared to the aggressive moves from Tepper and Klarman.

Why these managers see a discount in a $2.5T company

The thesis centers on two things: AWS and Amazon’s massive AI infrastructure buildout.

Amazon has committed to nearly $200 billion in capital expenditure, with a heavy emphasis on artificial intelligence capabilities.

The crypto angle: AWS meets stablecoins

In May 2026, AWS launched Bedrock AgentCore Payments in partnership with Coinbase and Stripe. The product allows AI agents to perform real-time stablecoin transactions.

AWS is the backbone for a massive share of internet infrastructure. Coinbase is the largest publicly traded crypto exchange in the US. Stripe is the dominant payments processor for internet businesses. When those three companies collaborate on a product, it signals institutional demand for crypto payment infrastructure is real and growing.

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