6. Amazon.com Inc (NASDAQ:AMZN)
Cathie Wood’s Stake: $279,823,368
Think of Amazon and AWS, Cloud and AI come to mind before e-commerce. That’s a win for the company that has positioned itself at the forefront of the AI revolution.
Amazon Web Services was already a leader in the cloud market when the AI revolution started, and that position has significantly boosted its growth. Demand has increased as AI companies and enterprises now need far more computing power to train and run large models, driving higher usage of AWS’s GPU-based cloud services and AI chips like Trainium and Inferentia. The result? AWS revenue rose 28% in Q1, amounting to about a $150 billion annualized run rate, marking its fastest growth in 15 quarters.
Amazon Web Services is no longer just a cloud and software-focused AI company. Its AI-focused Trainium chip line is seeing strong demand and rapid scaling. Trainium has already built a backlog of over $225 billion, and that figure had crossed $20 billion earlier while still growing at a triple-digit year-over-year rate.
Amazon.com Inc (NASDAQ:AMZN) recently said its Trainium2 chip delivers about 30% better price-performance than comparable GPUs and is largely sold out, showing strong adoption from AI customers. Its next-generation Trainium3 improves performance by another 30% to 40% over Trainium2 and is already nearly fully subscribed.
Vulcan Value Partners stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2026 investor letter:
“There were seven material detractors to performance: Ares Management Corporation, Ryan Specialty Holdings, Inc., Microsoft Corporation, Salesforce, Inc., UnitedHealth Group Incorporated, Amazon.com, Inc. (NASDAQ:AMZN), and SAP SE. Amazon reported strong results for its fiscal year and fourth quarter. During the fourth quarter, AWS’s revenue increased 24% and highly profitable advertising revenue grew 22%. AWS is benefitting from AI driven demand for its cloud services and its growth is accelerating. In addition, Amazon is aggressively building out its promising Leo satellite service that will compete with Starlink. As a result, Amazon’s capital spending is forecast to increase over 50% in 2026 to approximately $200 billion. We expect a solid return on this capital spending. Bears believe that Amazon is investing too much money in capital spending. Our view is that it is a darn good problem to have and that Amazon will become even more competitively entrenched as the leading cloud services provider in the world.”
While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see Cathie Wood’s 5 Biggest AI and Data Center Stock Picks.
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