Billionaire Bruce Kovner’s 10 Stock Picks with Huge Upside Potential

8. Amazon.com Inc. (NASDAQ:AMZN)

Caxton Associates’ Stake: $532.06 million

Number of Hedge Fund Holders: 339

Average Upside Potential as of May 7: 27.18%

Amazon.com Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores internationally. It operates through three segments: North America, International, and Amazon Web Services. It offers its products through its stores. These include merchandise and content purchased for resale, and products offered by third-party sellers.

Amazon is investing in AI infrastructure and services at every level of the stack. This is exemplified by the custom AI chip Trainium 2, which offers compelling price-performance advantages for model training. On May 5, Baird increased its price target for the stock from $215 to $220, while maintaining an Outperform rating.

The firm made this update after Amazon’s Q1 2025 results, where AWS was of significant focus. AWS generated $29.3 billion in Q1 revenue, which was up 17% year-over-year. AWS is experiencing growth across both its traditional cloud offerings and its GenAI business. Companies of all sizes are increasingly relying on AWS to modernize their infrastructure, such as Adobe and Uber.

Harding Loevner Global Developed Markets Equity Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:

“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. In Consumer Discretionary, Amazon.com, Inc. (NASDAQ:AMZN) reported strong third-quarter results. Revenue increased by double digits, led by growth in advertising and Al products, while the company’s operating margins also hit an all-time high of 11%. The key reasons for the higher margins were that its international e-commerce operations turned profitable, and there was faster growth in its high-margin cloud-computing business.”