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Top 10 Stocks Picked by 10 Famous Billionaires. Amazon.com (NASDAQ:AMZN) is ranked #1 (see Top 5 Stock Picks of 5 Famous Billionaires).
Top Picks From: Seth Klarman – The Baupost Team
Billionaire Klarman is often a fan of value stocks that trade on the cheap. But his biggest holding is AMZN and that says a lot about the billionaire’s vision for the AI revolution.
Amazon (NASDAQ:AMZN) remains one of the strongest beneficiaries of the AI cycle, especially with AWS. The shift to AI systems, especially large-scale directives and AI agents, is structurally increasing the demand for cloud infrastructure, where AWS has a large share of the global market.
AWS has built a massive backlog of about $464 billion, including about $138 billion from OpenAI and $100 billion from Anthropic, highlighting the need for a multi-year contract and strengthening AWS’s role as the core infrastructure of the AI ecosystem. This level of lag reflects not just near-term growth, but a long-term demand cycle tied to enterprise AI adoption.
AWS currently only represents about 20% of Amazon’s (NASDAQ:AMZN) total revenue, yet it contributes about 60% of operating income, reflecting a sharper profit focus in the cloud segment compared to the underlying retail business.
AWS revenue has also reached an annual run rate of $150–$155 billion, with recent growth of about 28% year-over-year, reflecting a re-acceleration rather than a decline in maturity.
According to a recent Semianalysis report, AWS is seeing margin expansion compared to competitors due in part to increased demand from Anthropic’s Claude workloads running on AWS Bedrock. The report says AWS is the only major cloud provider to show consistent margin growth, as the wider industry struggles with pressure to make profits.
Beyond the cloud, Amazon.com’s ( NASDAQ:AMZN ) AI opportunity is expanding into chips and custom silicon. Amazon’s AI-related revenue is now more than $15 billion a year, and its broader custom silicon business is exceeding an annual average of $20 billion, reflecting the strong growth of Graviton and other in-house chip systems.
The Artisan Value Fund says the following about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2026 investor letter:
“We started four new positions in Q1, a pace above the professional average. In general, we add 1-2 new positions per quarter, an average of 1.7 per quarter over the past 5 years. Market volatility and the large dispersion of US equities create more opportunities to invest in companies that meet our three safety criteria thresholds: an attractive business downturn, improved economic conditions and attractive portfolio quality. the biggest overall was Amazon.com, Universal Music Group (UMG) and IQVIA Holdings.
Amazon.com, Inc. (NASDAQ:AMZN) stands for …..(Click Here to Read the Book in Details).”
