Bill Ackman, David Tepper, and other billionaire fund managers are quietly piling into Amazon

A murderer’s row of hedge fund managers agree on one investment move: Amazon is a bargain megacap stock in the artificial intelligence trade that looks expensive. During the most recent quarters, a roster of money managers including David Tepper‘s Appaloosa Management, Seth Klarman’s Baupost Group, Al Gore’s Generation Investment Management, and Sanders Capital have been enlarging their stakes in the $2.5 trillion tech-and-retail giant. In Klarman and Tepper’s cases, the stock has become their single largest holding. Bill Ackman-led Pershing Square began amassing an Amazon stake from scratch about a year ago, and Pershing Square now counts Amazon as its second-largest position at about $2.4 billion. Global investment manager Sanders Capital, founded by former AllianceBernstein CEO Lewis Sanders, doubled its Amazon stake in the first quarter of 2026 to 29.8 million shares worth about $6.2 billion, making the stock its third-largest holding behind Taiwan Semiconductor and Alphabet. The reason for the season? They smell value. While stock in nearly every other company with a claim on the AI boom has soared during the past 12 months—with Nvidia up 35%, Intel up 496%, and Micron Technology up 719%—Amazon’s stock gains have been relatively meager and haven’t yet caught up to the business results. Year-to-date, Amazon’s stock is up 3.4% and 10.1% for the past 12 months. Yet, during its last earnings call Amazon’s cloud division—a starring player in the AI boom—just posted what CEO Andy Jassy called its “fastest growth in 15 quarters.” For value investors, the gap between a business on a tear and tepid share price growth presents a massive opportunity for upside. “Their businesses are worth more than the share price and they’re in the catbird seat on just about everything.” said Charles Lemonides, founder of hedge fund ValueWorks who also holds a stake in the tech juggernaut. “Why wouldn’t one want to own Ama