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Amazon's Stock Investments Overview

Jun 22, 2025

Overview

The video reviews Amazon's five largest direct investments in other companies' stocks, providing analysis, strategic context, and a personal ranking from best to worst.

Amazon's Stock Investments: Overview and Rationale

  • Amazon invests in both tech and non-tech stocks, seeking strategic benefit, portfolio growth, and potential partnerships.
  • These investments aim to secure supply chains, drive AI/cloud innovation, and possibly prepare for future acquisitions.
  • Holdings are ranked by size, from smallest to largest.

Stock 1: Marvell Technology (MRVL)

  • Amazon holds ~$14 million in MRVL, benefiting from AI-driven chip demand and custom AI accelerators.
  • Marvell's financials show strong growth prospects but face increasing competition, risking customer loss.
  • Stock valuation is low relative to sector, combining growth and value appeal.
  • Ranked #2 by the reviewer for its balanced potential and value.

Stock 2: Astera Labs (ALAB)

  • Amazon owns ~$16 million in ALAB, a recent IPO focused on AI data center connectivity.
  • ALAB is growing rapidly, serving major tech firms and turning profitable, though faces tough competition (including from Marvell).
  • Valuation is higher than Marvell, leading to a slightly lower ranking.
  • Ranked #3.

Stock 3: Vital Farms (VITL)

  • Holding: ~$46 million, notable as a non-tech addition tied to Amazon’s Whole Foods acquisition.
  • Vital Farms offers ethically-produced eggs and butter; investment is strategic for supply security and logistics.
  • Company financials are steady but growth is slowing, and valuation is high for the product type.
  • Ranked #5 due to limited diversification and excitement versus others.

Stock 4: Advanced Micro Devices (AMD)

  • Amazon’s stake: ~$84 million, 2nd largest holding.
  • AMD competes on price with Intel/Nvidia, gaining data center and client business market share.
  • Recent price dips make valuation attractive; strong profit/revenue growth expected.
  • Reviewer previously owned AMD and is considering buying again.
  • Ranked #1 for value and growth trajectory.

Stock 5: Rivian (RIVN)

  • Amazon’s only billion-dollar+ holding, ~81% of portfolio.
  • Strategic for Amazon's EV delivery fleet, but standalone prospects are questioned due to high vehicle prices and ongoing losses.
  • Stock is down 90%, but still expensive versus sector.
  • Reviewer sees limited excitement and lower growth potential versus others.
  • Ranked #5.

Reviewer’s Final Rankings

    1. AMD
    1. Marvell Technology
    1. Astera Labs
    1. Vital Farms
    1. Rivian

Strategic Takeaways

  • Amazon’s investment choices align with logistics, cloud/AI ecosystem, and supply chain goals.
  • The reviewer finds AMD most attractive as an individual investment, others more speculative or niche.

Questions / Follow-Ups

  • How will Rivian’s upcoming lower-cost EV impact financials and adoption?
  • Will Amazon pursue acquisitions of these companies in the future?
  • Can Marvell and Astera Labs maintain growth amid intensifying competition?

Full transcript