Palantir Billionaire Peter Thiel Buys 2 Brilliant AI Stocks (Hint: Not Nvidia or Micron)
Key PointsThiel Macro, an investment company run by Peter Thiel, had 42% of its portfolio invested in Amazon and Vistra Energy as of the second quarter.
Investment guru Peter Thiel is known for co-founding Palantir Technologies and leading his investment firm, Thiel Macro. His portfolio is heavily invested in two artificial intelligence stocks: Amazon and Vistra. Despite having no exposure to Nvidia or Micron, Thiel Macro has outperformed the S&P 500 (^GSPC -0.02%) over the past six quarters, even during periods when Amazon and Vistra were not included in the portfolio.
Amazon, classified as part of the consumer discretionary sector, is making waves in AI due to its expansive cloud computing business. The company has developed numerous AI applications for retail, including inventory management, demand forecasting, and logistics optimization. Amazon's workforce uses AI-powered robots, like the Proteus model, to improve efficiency.
In cloud computing, Amazon Web Services (AWS) caters to AI demand at various levels, offering custom accelerator chips, development tools, and software solutions. AWS has seen a 37% revenue increase in the second quarter, signaling strong growth potential for AI infrastructure investments.
Vistra, a key player in U.S. electricity generation, is another AI-friendly stock in Thiel Macro's portfolio. The company's diverse portfolio includes nuclear, natural gas, coal, and renewable power plants. Vistra is in long-term power purchase agreements with major tech companies like Meta Platforms and Amazon, ensuring steady revenue streams. Vistra's trading price is currently valued at 10.8 times operating cash flow, presenting a potential 29% upside from its current share price of $162.
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