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Amazon.com Inc. (AMZN): D. E. Shaw Turns Bullish on Tech Giant

Amazon.com, Inc. (NASDAQ:AMZN) features on the D. E. Shaw Stock Portfolio: Top 10 Stocks to Buy.

D. E. Shaw has been bullish on the long-term prospects of Amazon.com, Inc. (NASDAQ:AMZN) stock for more than a decade and a half. The fund has held a sizable stake in the technology giant since the fourth quarter of 2010. Although the stake initially comprised only 2.2 million shares, it has since grown. In the second quarter of 2012, it comprised close to 32 million shares. Filings for the fourth quarter of 2025 show that the fund upped the stake by almost 87% compared to filings for the previous quarter. It comprises more than 6 million shares presently. The loading up of the stock marks the first time in eight quarters that the fund has not trimmed this holding but instead increased it.

READ MORE33 Stocks That Should Double in 3 Years.

Amazon.com, Inc. (NASDAQ:AMZN) is one-upping competitors in the AI space through the $200 billion capital expenditure plan that is giving the firm a custom silicon advantage. Amazon’s in-house chips, like Trainium and Graviton, now generate over $10 billion in annualized revenue. By owning the silicon layer, Amazon can offer AI compute at a significantly lower cost than competitors who rely solely on third-party GPUs, a structural advantage that hedge funds believe will lead to superior long-term margins. Another catalyst for the stock is the advertising business, which has quietly reached an $80 billion annualized run rate, carrying significantly higher margins than the core retail business.

While we acknowledge the risk and potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years

Disclosure: None. Follow Insider Monkey on Google News

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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