Millionaire Fund Managers Zero In on Amazon: Value Gap Meets AI Surge

Amazon has become the focal point of a covert coalition of mega‑fund managers, offering a massive re‑valuation opportunity on a $2.5 trillion market cap.

Tactical Buying Wave

Fund titans such as Bill Ackman, David Tepper, Seth Klarman, Al Gore, and Lewis Sanders are aggressively scaling up their Amazon stakes. The move seeks to exploit the disconnect between the stock’s modest price appreciation and the company’s AI‑driven earnings surge.

AWS’s Rocket‑Like Growth and Valuation Gap

Amazon Web Services (AWS) sits at the heart of the AI infrastructure boom, posting 28% quarter‑over‑quarter growth and delivering $37.6 billion in revenue. Analysts estimate that AWS alone accounts for roughly 50% of Amazon’s total enterprise value, with the remainder split between retail and advertising.

■$364 billion of unrecognized contracted revenue backlog

■$100 billion+ spend commitment with Anthropic over the next decade

■Planned $200 billion capex for 2026, heavily weighted toward AWS expansion

Heavyweights’ Positioning

■Pershing Square: Elevated Amazon to its second‑largest holding at $2.4 billion

■Sanders Capital: Doubled its stake in Q1 2026 to 29.8 million shares ($6.2 billion)

■Institutional investors such as UBS Asset Management, Norges Bank, and Victory Capital reported fresh purchases in their latest 13F filings

Market‑Cap Multiples and Pricing

Amazon trades at a forward‑earnings multiple of 27×, well above peers like Microsoft, Nvidia, and Meta, which sit around 18‑20×. The premium reflects expectations of sustained AWS growth and the massive capex pipeline.

■$310 price target (Bank of America) – based on a sum‑of‑the‑parts valuation anchored on AWS

■Morgan Stanley notes Amazon trades at a “deep discount” when adjusted for projected profit acceleration

Risk Balance and Portfolio Dynamics

While some marquee investors (Berkshire Hathaway, Stanley Druckenmiller) have trimmed their equity exposure, they remain heavily positioned via options, indicating a nuanced risk‑adjusted bet. Portfolio rebalancing does not always signal a bearish outlook.

Dr. Yaman Ege – Director of Semiconductor and Technology Supply Chain: Amazon’s gargantuan investments in AI and cloud infrastructure align with capacity expansions at TSMC and ASML. The China‑U.S. rare‑earth tug‑of‑war could strain GPU makers like Nvidia and AMD, prompting AWS to further internalize its data‑center hardware. Over the long term, Amazon’s dual‑engine model—cloud plus retail—will cement its central role in the AI value chain, justifying its current valuation premium.