Tepper's $900M Bet on Amazon: A Contrarian Play in the AI Infrastructure Cycle

Billionaire investor David Tepper has revealed his largest stock holding is Amazon (AMZN), with a stake worth around $900 million, making up about 15% of his portfolio. This represents a significant increase from the previous quarter, where Amazon was his third-largest holding at around 7%. The value of this position has increased by over 29% since March 31, when it was valued at $208.27.

Tepper's investment strategy is centered around Amazon's cloud computing business, AWS, which grew 28% year-over-year in Q1 2026 to $37.59 billion. This growth is driven by the increasing demand for AI infrastructure spending, with custom silicon business Trainium and Graviton crossing a $20 billion annual revenue run rate.

Other investors, including Jeff Bezos and Andy Jassy, have sold shares of Amazon in recent months, but Tepper has doubled down on his bet. This move is seen as contrarian, given the decline in sentiment around hyperscaler CapEx spending.