Billionaire Bets on AI Revolution with Major Stock Moves
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 47 minutes ago
0mins
Should l Buy AMZN?
Source: Fool
- Amazon Investment Surge: David Tepper increased his stake in Amazon to 2,140,609 shares in Q1, a 98% rise, which not only boosts his holdings in the e-commerce giant but also accelerates AWS sales growth through the integration of generative AI and large language models, solidifying Amazon's leadership in the cloud services market.
- Uber Stake Expansion: Tepper purchased 4,482,720 shares of Uber in Q1, representing a 242% increase, and while most investors do not link Uber to the AI revolution, its platform relies on AI for route optimization and dynamic pricing, positioning it for sustained double-digit annual sales growth and reinforcing its dominance in the U.S. ride-sharing market.
- New Position in Sandisk: Tepper added 281,250 shares of Sandisk, making it a top-12 holding for Appaloosa, as Sandisk's stock price skyrockets due to surging demand for AI data center infrastructure, with 2027 EPS estimates projected to leap from under $10 to over $171, indicating strong market potential.
- Optimistic Market Outlook: With the rapid advancement of AI technology, the diversified business models of Amazon and Uber are expected to benefit in future economic cycles, particularly in advertising and subscription services, which are anticipated to further enhance their market share and profitability.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 264.860
Low
175.00
Averages
280.01
High
325.00
Current: 264.860
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Cloud Business Growth: Amazon's AWS reported a 28% year-over-year revenue increase in Q1 2026, reaching $37.6 billion, showcasing its leadership in the cloud market and strong profitability, which has driven the stock price surge.
- Surge in Custom Chip Revenue: Amazon's custom chips (Trainium and Graviton) generated $20 billion in annualized revenue last quarter, growing at a triple-digit rate, and are expected to become a significant revenue source, potentially surpassing its e-commerce business in the coming years.
- Capital Expenditure Plans: Amazon anticipates capital expenditures to reach $200 billion in 2026, up from $131 billion in 2025, which may impact short-term free cash flow but is expected to yield substantial long-term returns.
- Strong Earnings Outlook: Amazon's net income grew by 31% in 2025, with analysts projecting a 21% annualized growth rate for earnings per share in the coming years, indicating significant potential for stock price doubling if AWS continues its rapid growth.
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- Increased Investment: Appaloosa Management increased its stake in Amazon by 7.9% in Q1, adding 2.14 million shares, which raised its portfolio allocation from 7.3% to 15.2%, demonstrating strong confidence in Amazon's future growth prospects.
- Holding Value: Appaloosa now owns 4.3 million shares of Amazon, valued at approximately $900 million, making it the largest position in the fund, significantly ahead of Micron Technology and Alphabet, reflecting Tepper's prioritization of Amazon.
- Market Timing: Tepper's purchase came when Amazon's stock dipped below $200 in February, indicating a strategic buy during the tech sell-off, and since then, the stock has rebounded 35% to $268, showcasing effective timing.
- Performance Outlook: Amazon's Q1 results exceeded expectations, with Q2 sales growth projected at 16%-19% and operating income growth at a midpoint of 15%, alongside a 28% increase in cloud revenue, highlighting robust market demand and investment potential.
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- Amazon Investment Surge: David Tepper increased his stake in Amazon to 2,140,609 shares in Q1, a 98% rise, which not only boosts his holdings in the e-commerce giant but also accelerates AWS sales growth through the integration of generative AI and large language models, solidifying Amazon's leadership in the cloud services market.
- Uber Stake Expansion: Tepper purchased 4,482,720 shares of Uber in Q1, representing a 242% increase, and while most investors do not link Uber to the AI revolution, its platform relies on AI for route optimization and dynamic pricing, positioning it for sustained double-digit annual sales growth and reinforcing its dominance in the U.S. ride-sharing market.
- New Position in Sandisk: Tepper added 281,250 shares of Sandisk, making it a top-12 holding for Appaloosa, as Sandisk's stock price skyrockets due to surging demand for AI data center infrastructure, with 2027 EPS estimates projected to leap from under $10 to over $171, indicating strong market potential.
- Optimistic Market Outlook: With the rapid advancement of AI technology, the diversified business models of Amazon and Uber are expected to benefit in future economic cycles, particularly in advertising and subscription services, which are anticipated to further enhance their market share and profitability.
See More
- Portfolio Adjustment: In Q1 2026, Abel exited 16 positions, a move rarely seen during Buffett's tenure, indicating a potential preference for shorter holding periods, despite Buffett's claim that his 'favorite holding period is forever.'
- Surprising Sales: Abel sold unexpected stocks like Amazon and UnitedHealth Group, both of which still have solid prospects, suggesting that he may be cleaning up the portfolio, particularly positions managed by former investment manager Todd Combs.
- Market Reaction: While Abel's sales have drawn market attention, Amazon and UnitedHealth Group are still considered excellent investment choices, especially given their ongoing growth potential in AI and healthcare, which may attract interest from other investors.
- Long-Term Value: Abel's decisions may be viewed as short-term clean-up, but the fundamentals of Amazon and UnitedHealth Group remain strong, particularly with Amazon's upcoming satellite internet service and UnitedHealth's cash flow performance, potentially yielding substantial returns for long-term investors.
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- Valuation Risks: Tesla's stock trades at 211 times its estimated 2026 earnings, facing pressure from rising oil prices and bond yields, particularly as Brent crude nears $110 per barrel, which may lead investors to favor cheaper megacap stocks, impacting Tesla's market performance.
- Shifting Market Sentiment: Despite a 1% premarket rise on Wednesday, analyst Gary Black warns that Tesla's elevated valuation could remain under pressure as inflation expectations rise, especially when compared to peers like Nvidia and Alphabet.
- Impact of SpaceX IPO: Speculation around SpaceX's expected IPO, potentially valued at over $2 trillion and aiming to raise up to $75 billion, has influenced Tesla sentiment, as investors are excited about Elon Musk's broader business ecosystem.
- Investment in AI and Robotics: Tesla plans to invest over $25 billion in 2023 for AI and robotics infrastructure, and despite facing pressures in its core automotive business due to slowing EV demand and rising competition, the company remains committed to leveraging technological innovation for long-term growth.
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- Major Portfolio Shift: In Q1 2026, Berkshire Hathaway, under new CEO Greg Abel, completely exited 16 positions, indicating a stark departure from Buffett's investment strategy, which may impact the company's future investment direction.
- Surprising Stock Exits: Abel's sale of Amazon and UnitedHealth Group, both considered quality assets under Buffett's philosophy, could shake market confidence in Berkshire's future investment decisions, raising questions about the company's strategic focus.
- Exit from Financial Stocks: Berkshire also fully divested from several financial stocks, including Mastercard and Visa, reflecting a cautious stance towards the financial sector, which may indicate concerns over market volatility and affect investor sentiment towards financial equities.
- Investor Reactions: Despite the market's focus on Abel's sell-off, analysts believe that Amazon and UnitedHealth Group remain strong investment candidates, particularly due to their long-term growth potential in artificial intelligence and healthcare, which could yield substantial returns for investors.
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