Amazon.com (AMZN): AI Exposure Adds, But Other Businesses Drive Results

Amazon.com (AMZN): AI Exposure Adds, But Other Businesses Drive Results

Thu, September 3, 2026 at 5:30 PM GMT+3 3 min read

• AMZN +1.07%

Andvari Associates, an investment management firm, released its second-quarter 2026 investor letter. The letter can be downloaded here. Andvari's portfolio has performed strongly in the quarter, highlighted by Constellation Software's 19.9% revenue growth and its plans to spend on acquisitions in 2026. The company is also focusing on AI tools to enhance productivity and customer relationships. However, the AI sector is experiencing extreme hype, leading to a growing disconnect between valuations and future cash flows. Predictions suggest the AI investment phase may decline in 1-3 years, despite current high demand for AI infrastructure, which is expected to attract significant competition. Concerns about overbuilding and risky financial behaviors, like Oracle's downgraded credit rating amid a $90-$95 billion AI cloud investment, reflect potential pitfalls. Andvari has minimized exposure to this sector, aiming to protect and grow assets through disciplined investments in stable industries despite recent underperformance during the AI boom. Also, check the fund's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, Andvari Associates highlighted Amazon.com, Inc. (NASDAQ:AMZN). Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology and retail company known for its leading online marketplace and cloud platform. On September 02, 2026, Amazon.com, Inc. (NASDAQ:AMZN) closed at $254.98 per share, reflecting a market capitalization of $2.75 trillion. Amazon.com, Inc. (NASDAQ:AMZN) posted a one‑month return of -6.35%, while its shares gained 8.19% over the past 52 weeks.

Andvari Associates stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2026 investor letter:

"All this said, Andvari does have some exposure to the AI theme. This year I added two hyperscalers: Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft. While each of these companies has varying degrees of exposure to the AI theme, I like that they all generate revenues and profits from other sources. Although Amazon and Microsoft are two of the five largest hyperscalers, Amazon has its logistics network, online retailing business, advertising network, and grocery stores."

Amazon.com, Inc. (NASDAQ:AMZN) is in top position on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 369 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the second quarter, compared to 353 in the previous quarter. While we acknowledge the potential of Amazon.com, Inc. (NASDAQ: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.

In another article, we discussed Amazon.com, Inc. (NASDAQ:AMZN) and noted Billionaire Philippe Laffont significantly expanded his stake in the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.