We just covered the 10 Best Long-Term Stocks to Buy According to Bill Ackman and Amazon.com, Inc. (NASDAQ:AMZN) ranks 3rd on this list.

Amazon.com, Inc. (NASDAQ:AMZN) first appeared in the 13F portfolio of Pershing Square in the second quarter of 2025. Back then, this position comprised 5.8 million shares. No activity was registered against this position in the third quarter of 2025. In the fourth quarter of 2025, however, the fund added to this holding by 65%, growing the stake to 9.6 million shares. This position is the third-largest in the Pershing 13F portfolio, accounting for nearly 15% of the total. The firm engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally.

READ MORE: 10 Best Stocks to Buy According to Billionaire Paul Tudor Jones.

Wall Street interest in Amazon.com, Inc. (NASDAQ:AMZN) stock is by the pivot of the firm from an e-commerce giant to a global leader in AI infrastructure. Hedge funds are betting that the investments of the company in data centers and AI will yield structurally higher margins as AWS captures the majority of enterprise generative AI workloads. A recent agreement by Amazon to invest up to an additional $25 billion in Anthropic, totaling over $33 billion, is seen as a demand lock. There is also renewed focus on the monetization of Rufus, the AI shopping assistant, which now serves 300 million users.  Amazon’s advertising business, boosted by the ad-supported Prime Video tier reaching 315 million viewers, is now its fastest-growing high-margin segment, providing the cash flow to fund its AI ambitions.

While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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