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Billionaire Paul Tudor Jones Trimmed His Position in Nvidia and Is Piling Into 2 Turnaround Tech Stocks
AMZNAmazon(AMZN) The Motley Fool·2025-04-05 12:53

Core Viewpoint - Paul Tudor Jones is shifting investments from Nvidia to Intel and Amazon, indicating a belief in their potential turnaround and growth prospects in the coming years [1][4]. Group 1: Intel - Intel's fiscal 2024 performance showed a net revenue decline of 2.1% year over year to 53.1billionandanetincomelossof53.1 billion and a net income loss of 18.8 billion, contrasting with a profit of 1.7billioninfiscal2023[5].−ThecompanyissettolaunchPantherLakearchitectureprocessorsinthesecondhalfof2025,whichwillutilizeits18Aprocessnode,markingasignificantproductintroduction[6].−Intelisenhancingitsfoundrybusinessbymakingthe18Aprocessavailabletoexternalcustomers,includingmajortechfirmslikeMicrosoftandAmazon,whichcouldstrengthenitscompetitiveposition[7].−Thefirstexternalcustomerforthe18Atechnologyisexpectedinthefirsthalfof2025,potentiallyallowingInteltocompetemoreeffectivelywithTaiwanSemiconductorManufacturing[8].−Intelhassecured1.7 billion in fiscal 2023 [5]. - The company is set to launch Panther Lake architecture processors in the second half of 2025, which will utilize its 18A process node, marking a significant product introduction [6]. - Intel is enhancing its foundry business by making the 18A process available to external customers, including major tech firms like Microsoft and Amazon, which could strengthen its competitive position [7]. - The first external customer for the 18A technology is expected in the first half of 2025, potentially allowing Intel to compete more effectively with Taiwan Semiconductor Manufacturing [8]. - Intel has secured 7.86 billion in grants from the U.S. Department of Commerce to support domestic chip manufacturing, which is a long-term growth catalyst for its foundry business [9]. - Despite challenges in the AI sector, Intel maintains a strong position in the PC CPU market, powering 7 out of 10 PCs globally, and is developing a scalable AI solution to target the data center market [10]. - The stock's negative news appears to be priced in, suggesting potential for growth in the coming months [11]. Group 2: Amazon - Amazon's shares have decreased over 21% from their all-time high in February 2025, influenced by a tech sell-off and concerns over trade wars and tariffs [12]. - AWS remains a critical growth driver, with an annualized revenue run rate of 115billionattheendof2024,despiteconcernsaboutAIinvestmentsaffectingdemand[13].−ThecompanyisenhancingitstechnologystackforAIworkloadsonAWS,includingdevelopingproprietarychipsandplatformsforAIapplications[14].−Theglobalcloudinfrastructuremarketisprojectedtogrowfrom115 billion at the end of 2024, despite concerns about AI investments affecting demand [13]. - The company is enhancing its technology stack for AI workloads on AWS, including developing proprietary chips and platforms for AI applications [14]. - The global cloud infrastructure market is projected to grow from 263 billion in 2024 to 838billionin2034,withAWSholdinga30838 billion in 2034, with AWS holding a 30% market share, positioning it well for future growth [15]. - Amazon's digital advertising business reached an annualized run rate of 69 billion at the end of fiscal 2024, leveraging first-party customer data [15]. - The company is working to improve e-commerce profitability through logistics optimization and automation [16]. - Amazon is trading at a forward P/E ratio of 29.2, significantly lower than its five-year average of 55.4, indicating solid growth potential at a reasonable valuation [16].