Billionaire hedge fund manager Daniel Loeb's Third Point made notable moves in Q4, selling 23% of its Amazon stake and 16% of its Microsoft position while increasing holdings in Nvidia, the AI chipmaker up over 1,200% since 2023. Despite the sales, Amazon and Microsoft remain the fund's third- and fourth-largest holdings, with each comprising over 6% of assets.

The portfolio adjustment suggests a strategic rotation toward high-growth AI exposure. Microsoft reported 17% year-over-year growth in its latest quarter, while Amazon's cloud division delivered its strongest performance in over three years. Both stocks have declined in 2026, potentially creating valuation opportunities.

Microsoft appears positioned better than Amazon on forward earnings metrics, with a substantial cloud computing revenue backlog spanning multiple years. The moves reflect how sophisticated investors are reallocating capital where they see the most compelling growth prospects in the artificial intelligence revolution.