Billionaire Philippe Laffont Sells Amazon Stock and Buys an Nvidia-Backed AI Stock Up 230% This Year

Group 1: CoreWeave - CoreWeave is an AI stock backed by Nvidia, which has become the largest holding in Philippe Laffont's portfolio, accounting for 8% [2] - The company reported a revenue surge of 207% to $1.2 billion in the second quarter, with non-GAAP operating income increasing 135% to $200 million [9] - CoreWeave's revenue backlog increased by 86% due to expanded contracts with OpenAI and a major hyperscale customer, likely Microsoft or Alphabet [9] - The company has a substantial amount of debt due to its rapid expansion of AI data centers, with interest expenses erasing over 20% of revenue in the second quarter [10] - Wall Street expects CoreWeave's revenue to grow at an annual rate of 90% through 2027, making its current valuation of 15 times sales appear reasonable [11] Group 2: Amazon - Amazon holds a significant market share, accounting for over 40% of U.S. e-commerce sales and 15% of digital ad spending, while AWS represents 30% of cloud infrastructure spending [3] - The company reported second-quarter financial results that exceeded estimates, with revenue rising 13% to $167 billion, driven by strong growth in advertising and cloud services [5] - Amazon's operating margin expanded by 1.5 percentage points, and GAAP net income increased by 33% to $1.68 per diluted share [5] - Wall Street estimates that Amazon's earnings will grow at an annual rate of 18% over the next three years, making its current valuation of 34 times earnings seem fair [6] Group 3: AI Industry - AI has become integral to growth strategies across various sectors, including retail, advertising, and cloud computing, enhancing inventory management, demand forecasting, and campaign creation [4] - CoreWeave is recognized as a leader in the emerging GPU cloud sector, specifically designed for AI workloads, distinguishing itself from traditional cloud providers [7] - The close partnership with Nvidia provides CoreWeave with early access to the latest GPUs, enhancing its competitive edge in the AI cloud services market [8]