$AMZN Stock: Tepper's Stake Grows Amid AI Demand

Billionaire investor David Tepper, through his Appaloosa Management, has significantly increased his exposure to Amazon ($AMZN+WL), allocating approximately 16% of his $7.5 billion stock portfolio to the e-commerce and cloud giant. The fund added nearly 15.8% more Amazon shares during the second quarter, signaling a strong conviction in the company's growth trajectory, particularly within its Amazon Web Services (AWS) division.

This strategic shift saw Appaloosa reduce holdings in semiconductor plays like Micron (down 41.4%) and exit SanDisk entirely, while also increasing stakes in Alphabet and Meta Platforms. The move suggests a broader trend of rotating from AI "pick-and-shovel" stocks into major cloud providers.

AWS reported a robust 37% revenue growth in its latest quarterly earnings, fueled by the ongoing AI infrastructure boom. This performance, coupled with CEO Andy Jassy's announcement of an increased 2026 capital expenditure budget, has bolstered the bull case for Amazon, which trades at a slight premium to some Magnificent Seven peers based on forward earnings estimates.

### Story Arc / How We Got Here Appaloosa Management's increased stake in Amazon follows a period of positive analyst sentiment for the company, driven by demand for its AWS services. Prior coverage on August 16, 2026, highlighted analyst fair value estimate bumps amid this AI demand, suggesting sustained investor interest in Amazon's cloud capabilities. Cross-link: /explore/amazon-stock-edges-up-on-analyst-fair-value-bump-amid-aws-ai-demand