Institutional Investors Strengthen Positions in Amazon as Value Persists

Institutional investors view Amazon (NASDAQ: AMZN) as a value opportunity. Major funds such as Bill Ackman’s Pershing Square and Appaloosa Management have expanded their holdings, citing Amazon’s relative valuation advantages within AI and cloud computing.

In contrast, pure‑play AI and cloud firms like Nvidia (NASDAQ: NVDA) and Intel (NASDAQ: INTC) are trading at higher multiples—Nvidia at 18× trailing sales and Intel at 12× price‑to‑sales—making their valuations appear stretched.

Amazon’s dual focus on e‑commerce and Amazon Web Services lends the company a more balanced valuation, reflected in a price‑to‑sales ratio of just 3.4×.

The stock has been largely flat in 2026, rising only about 7% over the past year. Forward and trailing price‑to‑earnings ratios settle around 30x, while the price remains below 4× sales.

Like many AI‑driven firms, Amazon’s primary risk centers on substantial capital expenditures. The company plans to invest roughly $200 billion in AI infrastructure this year. While competition intensifies, Amazon’s diversified business model provides a decisive advantage, explaining the increased institutional interest. For investors comfortable with the AI spend, Amazon remains a comparatively attractively priced opportunity.

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