We just covered Billionaire Tom Steyer’s 10 Stock Picks with Huge Upside Potential and Amazon.com, Inc. (NASDAQ:AMZN) ranks 8th on this list.

Amazon.com, Inc. (NASDAQ:AMZN) is a relatively new addition to the 13F portfolio of Farallon Capital. The fund first disclosed a stake in the company back in the second quarter of 2025. This position comprised a little over 3 million shares. In the third quarter of 2025, the fund grew the stake to around 3.5 million shares, adding 15% to the previous holding. Filings for the fourth quarter of 2025 show that the fund owned 4.5 million shares in the company, up 28% compared to filings for the previous quarter. Amazon engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally.

Amazon.com, Inc. (NASDAQ:AMZN) is being treated as a primary beneficiary of the AI infrastructure super-cycle in 2026. While the stock has faced some short-term price pressure due to capital expenditure forecasts, the smart money is buying into the rapidly accelerating cloud and chip divisions of the firm. In the Q1 2026 earnings report, the company revealed that AWS revenue grew 28% year-over-year to $37.6 billion, its fastest growth in 15 quarters. CEO Andy Jassy revealed that AWS’s AI revenue run-rate has exceeded $15 billion, representing roughly 10% of total AWS revenue. Hedge funds view this as a clear signal that Amazon is successfully monetizing GenAI at scale.

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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