Hedge Funds Are Buying Up Amazon Stock. Should You Join In, Too?
Key takeaways
- Catie Hogan, The Motley Fool Sun, June 28, 2026 at 6:39 AM GMT+7 2 min read AMZN NVDA PS INTC What do hedge funds see in Amazon (NASDAQ: AMZN) right now?
- More pure-play or native AI and cloud computing businesses, such as Nvidia (NASDAQ: NVDA) and Intel (NASDAQ: INTC), have seen their valuations become so inflated that it can be hard to justify their prices.
- In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
Catie Hogan, The Motley Fool Sun, June 28, 2026 at 6:39 AM GMT+7 2 min read AMZN NVDA PS INTC What do hedge funds see in Amazon (NASDAQ: AMZN) right now? The answer is likely "value." Large funds, including Bill Ackman's Pershing Square and Appaloosa Management, have reportedly increased their positions in Amazon. Their underlying thesis is that Amazon is undervalued relative to other artificial intelligence and cloud computing companies.
More pure-play or native AI and cloud computing businesses, such as Nvidia (NASDAQ: NVDA) and Intel (NASDAQ: INTC), have seen their valuations become so inflated that it can be hard to justify their prices. Nvidia trades at 18 times trailing sales and Intel commands a 12x price-to-sales ratio nowadays.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »