Hedge Funds Flock to Amazon Amid AI Growth Catalysts

Gunderson Capital Management LLC significantly increased its stake in Amazon.com (NASDAQ:AMZN) by buying 2,681 shares during the second quarter. The fund's holdings now amount to $1,233,000.

This is not an isolated instance of a hedge fund increasing its position in Amazon.com. Red Crane Wealth Management LLC added 38 shares during the first quarter, while Robinson Smith Wealth Advisors LLC and Sfam LLC each purchased 40 additional shares. Measured Risk Portfolios Inc. also grew its stake by 3.4% through the purchase of 40 more shares.

The e-commerce giant's stock price has been gaining momentum due to various factors. Evercore ISI raised Amazon's target price to $355 from $315.16, citing agentic AI potential as a growth catalyst. Additionally, the company's expanded partnership with Nvidia will enable it to add 2 million GPUs to its data centers in 2027-2028.

The recent surge in Amazon's stock is also attributed to the company's strong revenue growth and solid retail profitability. However, some analysts have expressed concerns about return-on-investment due to the increased capital budget for AI spending.