Wealthfront Invests Big in Amazon Amid AI Growth

Wealthfront Advisers LLC has invested $305.41 million in Amazon.com, Inc. (NASDAQ:AMZN) during the second quarter, according to its latest Form 13F filing with the SEC.

The fund purchased 1,281,390 shares of the e-commerce giant's stock, making it one of the company's largest holdings at approximately 0.6% of Wealthfront Advisers LLC's portfolio.

This investment is part of a larger trend in which Amazon has been gaining attention from institutional investors and analysts alike. The company's cloud computing arm, AWS, has been identified as a key driver of its growth, with many experts citing its fastest growth in 18 quarters and the potential for sustained AI demand.

In related news, Amazon's AI buildout requires significant capital spending and new debt, which raises concerns about costs, leverage, and operations. Additionally, risks remain around changes to Ohio data-center tax incentives and a fatal accident involving an aircraft operating for Prime Air has increased regulatory and reputational risk.