Palantir Billionaire Peter Thiel Buys an AI Stock Up 560% in 10 Years (Hint: Not Nvidia)

Key Points Amazon is using AI to unlock new revenue streams in cloud computing and to improve efficiency in retail. Amazon is spending heavily on AI infrastructure, but accelerating cloud sales growth means those investments are paying off. Amazon stock is cheaper today than it did when billionaire Peter Thiel bought shares in the second quarter. These 10 stocks could mint the next wave of millionaires › Billionaire Peter Thiel, co-founder of Palantir Technologies , runs the investment company Thiel Macro. The company sold its entire portfolio in Q3 2025 and did not buy stocks again until Q2 2026, when it added eight new positions. The largest was Amazon (NASDAQ: AMZN) , an artificial intelligence stock up 560% in the past decade. Interestingly, Thiel does not own a position in Nvidia . In fact, Amazon is the only technology company in his portfolio. The other seven stocks come from the energy sector, likely because he believes the massive power requirements of AI data centers will become a bottleneck. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Regardless, investors should take a closer look at Amazon. Here are the important details. Image source: Getty Images. Amazon is using AI to unlock new revenue streams and improve efficiency The investment thesis for Amazon is simple. The company enjoys a strong competitive presence in retail e-commerce, digital advertising, and cloud computing, three markets where annual sales growth is projected to be 12% to 16% through the end of the decade. Think of that range as a baseline forecast for Amazon's earnings growth during the same period. However, Amazon's earnings could grow more quickly as investments in artificial intelligence unlock new revenue streams and improve productivity. Within retail, Amazon is the largest operator of industrial mobile robots , and the company is leaning on AI to make its fleet faster and more efficient. For instance, workers can engage the latest Proteus robots in natural language . "We see a long runway for further efficiency improvements in fulfillment and shipping costs, in particular with robotics," writes Morgan Stanley analyst Brian Nowak. He thinks fulfillment and shipping costs consume 36% of retail revenue, so margins could improve substantially if Amazon successfully automates a good chunk of that work. Elsewhere, Amazon Web Services (AWS), as the leading provider of cloud infrastructure and platform services, is well-positioned to capitalize on AI demand simply because it has a large customer base. Those customers may find it easier to adopt AI tools within AWS, where their data already resides, rather than migrate to a new cloud platform. However, Amazon's cloud computing revenue could grow faster than the industry average as it monetizes proprietary AI agents and Trainium chips, custom silicon built specifically for training and inference workloads. Morgan Stanley estimates AWS could generate $1 trillion in revenue in 2035, implying 21% annual growth over the next nine-plus years. Amazon is spending heavily on AI infrastructure, but those investments are paying off Amazon reported sensational financial results in the second quarter, beating estimates on the top and bottom lines. Revenue rose 20% to $201 billion, the fifth straight acceleration, and operating income (which excludes unrealized gains from its stake in Anthropic ) rose 43% to $28 billion. Amazon's financial results in the cloud computing segment were particularly noteworthy because they offer concrete proof that the company is earning reasonable returns on investments in AI infrastructure. In the second quarter, AWS revenue increased 37%, the fastest growth in 18 quarters. Admittedly, some investors are still anxious about Amazon's projected $220 billion in capital expenditure (capex) spending this year, up from $128 billion last year. But strong results in the AWS segment, including triple-digit sales growth from AI workloads, should allay some of those concerns. Additionally, CEO Andy Jassy provided encouraging insight on the earnings call. "As we get a few years out and the revenue growth outpaces the incremental capex growth, which will happen at some point, the resulting revenue, free cash flow, and return on invested capital is very compelling." Most Wall Street analysts think Amazon stock is undervalued Wall Street estimates Amazon's earnings will increase at 21% annually over the next three years. That makes the current valuation of 21 times earnings look cheap. Those numbers give a price-to-earnings-to-growth (PEG) ratio of 1, which is even more compelling than the average PEG ratio of 1.5 in the second quarter when Peter Thiel bought the stock. Indeed, Wall Street thinks Amazon is undervalued today. Among 70 analysts, the stock has a median 12-month target price of $330 per share. That implies 32% upside from its current share price of $255. Patient investors with a five-year time horizon should feel comfortable buying a small position right now. Don’t miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this. On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $582,768 !* Apple: if you invested $1,000 when we doubled down in 2008, you’d have $61,989 !* Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $446,157 !* Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor , and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of September 4, 2026. Trevor Jennewine has positions in Amazon, Nvidia, and Palantir Technologies. The Motley Fool has positions in and recommends Amazon, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy .

Amazon is using AI to unlock new revenue streams in cloud computing and to improve efficiency in retail.

Amazon is spending heavily on AI infrastructure, but accelerating cloud sales growth means those investments are paying off.

Amazon stock is cheaper today than it did when billionaire Peter Thiel bought shares in the second quarter.

Billionaire Peter Thiel, co-founder of Palantir Technologies , runs the investment company Thiel Macro. The company sold its entire portfolio in Q3 2025 and did not buy stocks again until Q2 2026, when it added eight new positions. The largest was Amazon (NASDAQ: AMZN) , an artificial intelligence stock up 560% in the past decade.

Interestingly, Thiel does not own a position in Nvidia . In fact, Amazon is the only technology company in his portfolio. The other seven stocks come from the energy sector, likely because he believes the massive power requirements of AI data centers will become a bottleneck.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Regardless, investors should take a closer look at Amazon. Here are the important details.