Tepper Doubles Down on Amazon Bet Amid Concerns Over AI Spending
David Tepper's investment firm Appaloosa Management nearly doubled its stake in Amazon during Q1 2026, making it his largest holding worth around $900 million. The bet focuses on Amazon's growing AWS cloud business and custom silicon, despite concerns over the company's heavy AI infrastructure spending.
While insiders and Berkshire Hathaway sold shares, Tepper sees long-term value in Amazon's $200 billion capital expenditure plan and accelerating AWS revenue. Investors should watch for AWS growth and free cash flow recovery in 2027 to confirm his contrarian thesis.
The expansion of Oracle and AWS collaboration is a positive sign for the cloud business, with the launch of Oracle AI Database@AWS in 22 regions worldwide. This move aims to accelerate customer migration to the service, making it more accessible to businesses of all sizes.