Billionaires Favor Amazon as AI Stock Over Nvidia and Alphabet
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 22 2026
0mins
Source: Fool
- AI Revolution Boosts Markets: Over the past four years, the AI revolution has propelled Wall Street's major indexes to new heights, yet billionaire investors have opted to sell Nvidia and Alphabet, favoring Amazon as their top AI stock, indicating a reassessment of AI investments in the market.
- Nvidia Sales Surge: Nvidia's data center sales skyrocketed by 92% in Q1 2024, driven by robust demand for its high-performance graphics processing units (GPUs), solidifying its leadership in AI infrastructure despite increasing competitive pressures.
- Alphabet's Rising Valuation: Alphabet's revenue soared by 63% in Q1 due to the integration of generative AI and large language model (LLM) capabilities, but its forward P/E ratio has risen from 16 to nearly 26, indicating that its stock is no longer seen as a bargain.
- Amazon's Market Position: Amazon dominates the U.S. e-commerce landscape and its AWS accounts for nearly one-third of global cloud infrastructure spending; despite slower stock price growth compared to Nvidia and Alphabet, its projected cash flow is expected to more than double by 2028, attracting interest from several billionaire investors.
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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: 242.670
Low
175.00
Averages
280.01
High
325.00
Current: 242.670
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.
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- Massive Future Potential: Anthropic's IPO could value the company at $965 billion, with Amazon's stake estimated between $135 billion and $160 billion, further enhancing Amazon's market position.
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See More
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- Future Plans Attract Investment: SpaceX's ambitious future plans, including establishing data centers in space and enabling everyday human space travel, spark investor interest, mirroring Tesla's successful trajectory and potentially leading to long-term investment returns.
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See More
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See More
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- Investment Signal: A new 'Total Conviction' signal is emerging, reminiscent of the 'Double Down' signal for Nvidia in 2009, suggesting potential investment opportunities, particularly for smaller companies.
- Investment Recommendations: The Motley Fool's analyst team has identified 10 top stocks for investors, notably excluding Walmart, which reflects a cautious outlook on its future performance and may impact investor confidence.
- Return Comparison: Stock Advisor boasts an average return of 918%, significantly outperforming the S&P 500's 208%, highlighting the strong performance of its recommended stocks and attracting more investor interest.
See More
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- Stock Performance: As of the afternoon of July 3, 2026, Amazon's stock price rose by 0.61%, reflecting positive investor sentiment towards its revenue growth, which may bolster future investment confidence.
- Market Competition: This revenue milestone signifies a critical achievement for Amazon in its competition with Walmart, potentially prompting Walmart to adopt new strategies to respond to market changes.
- Video Release Impact: The video published on July 5, 2026, aims to highlight Amazon's market performance, potentially attracting more consumer and investor attention to its future developments.
See More
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- Advantages of FDE Model: By embedding experienced programmers directly within customer teams, FDEs can swiftly address technical challenges and ensure seamless integration with existing platforms, significantly reducing time-to-value and enhancing customer satisfaction.
- Surging Market Demand: As generative large language models increase the complexity of AI workloads, the FDE model enables AWS to provide comprehensive, specialized support that helps enterprises optimize infrastructure and securely handle sensitive data, further solidifying its market position.
- Learning from Success: Amazon's FDE strategy appears to be inspired by Palantir's successful approach, as embedding technical talent alongside its leading cloud infrastructure and AI suite could allow Amazon to achieve deeper customer relationships and rapid deployment advantages, driving commercial growth.
See More
