Every investor dreams of knowing what the world’s wealthiest and most successful money managers are buying. Billionaires like Stephen Mandel and Chase Coleman didn’t build their fortunes on luck — they built them through sharp analysis, long-term conviction, and a deep understanding of global trends.
In 2025, the latest Form 13F filings (public disclosures of institutional investments) revealed that these billionaire fund managers are doubling down on some familiar names: Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN).
Both companies are part of the “Magnificent Seven” — a term used to describe the powerhouse tech stocks driving much of the market’s gains. Let’s explore why these two giants continue to attract billionaire attention — and what it means for your portfolio.
1. Microsoft (NASDAQ: MSFT): The Cloud and AI Titan
Why Billionaires Love Microsoft
Microsoft has long been a favorite among institutional investors, and for good reason. The company has evolved from a software pioneer into a global leader in cloud computing and artificial intelligence (AI).
Two prominent billionaire fund managers — Stephen Mandel (founder of Lone Pine Capital) and Chase Coleman (founder of Tiger Global Management) — have both increased their holdings in Microsoft in early 2025.
So, what’s fueling their confidence?
A Cloud Business on Fire
Microsoft’s Azure continues to be the company’s growth engine. In Q1 2025, Azure revenue jumped 33% year over year, outpacing even the strong growth it showed in previous quarters.
According to Microsoft CFO Amy Hood, this surge is driven by “unrelenting demand for cloud and AI services that help businesses operate more efficiently.”
Azure has become the go-to choice for global enterprises looking to power digital transformation. Its integration with popular software ecosystems like Oracle, SAP, and Dynamics 365 gives Microsoft a unique edge.
| Metric | Q1 2024 | Q1 2025 | Growth |
|---|---|---|---|
| Azure Revenue | $23.6B | $31.4B | +33% |
| EPS (Earnings per Share) | $2.56 | $3.02 | +18% |
Also Read: Which Tech Stocks Have the Highest Growth Potential?
AI: The Next Growth Frontier
Microsoft’s deep investment in artificial intelligence — including its partnership with OpenAI (the creator of ChatGPT) — is redefining its competitive position. AI is now embedded across its products:
- Copilot in Microsoft 365 boosts productivity through AI-powered assistance.
- Azure AI provides scalable machine learning solutions for enterprises.
- GitHub Copilot continues to revolutionize software development.
These innovations not only create new revenue streams but also lock customers more tightly into the Microsoft ecosystem.
The Challenge: Balancing Growth and Costs
The downside? Building out AI and cloud infrastructure requires enormous capital spending. Microsoft’s aggressive expansion of data centers — to support global demand — has tightened profit margins.
However, the company’s ability to grow earnings 18% year over year despite these costs shows just how resilient its business model is.
Currently, Microsoft trades around 34x forward earnings, compared to 26x earlier in 2025. That’s on the pricier side of its valuation range — but given its growth trajectory and strong fundamentals, long-term investors may still see it as a high-quality compounder worth holding.
💡 Expert Insight:
According to Forbes analysts, Microsoft’s AI-first strategy could unlock trillions in enterprise productivity gains over the next decade, cementing its leadership position in both AI software and cloud computing.
2. Amazon (NASDAQ: AMZN): Reinventing E-Commerce and Cloud with AI
Why Billionaires Are Buying More Amazon
Amazon remains a top holding among billionaire investors, including Mandel and Coleman — and for good reason. The company’s twin engines, e-commerce and cloud computing, continue to generate robust profits.
Even after decades of growth, Amazon still finds new ways to innovate and expand.
AWS: The Cash Cow of the Digital Age
Amazon Web Services (AWS) is the cornerstone of Amazon’s profitability. In Q1 2025, AWS revenue grew 17% year over year, reaching an impressive $112 billion annually — nearly 20% of Amazon’s total revenue.
That’s not just scale — it’s strategic dominance. AWS powers everything from startups to Fortune 500 giants.
To stay ahead of competitors like Microsoft Azure and Google Cloud, Amazon is doubling down on AI infrastructure.
Its Trainium3 AI chips and Amazon Bedrock platform make it easier and cheaper for companies to build custom AI applications — a move that could secure AWS’s lead in enterprise AI.
Efficiency and Profitability: The New Amazon
Gone are the days when Amazon sacrificed profits for growth. Under CEO Andy Jassy, the company has embraced operational efficiency.
Key improvements include:
- Robotic automation in fulfillment centers.
- Streamlined logistics that reduce delivery times and costs.
- Rising profitability in advertising and third-party seller services.
The results speak volumes: Amazon’s earnings per share jumped 62% year over year in Q1 2025.
| Segment | 2024 Revenue | 2025 Revenue | YoY Growth |
|---|---|---|---|
| AWS | $95.7B | $112B | +17% |
| Advertising | $43.3B | $52B | +20% |
| North America E-Commerce | $316B | $335B | +6% |
Valuation: Still Attractive
Despite its massive size, Amazon’s stock trades at around 19x operating cash flow, which is modest compared to historical averages. That suggests billionaire investors see long-term value — especially as AI and automation continue to boost margins.
💡 Expert Insight:
According to CNBC, Amazon’s expanding AI ecosystem positions it to dominate the next generation of cloud and logistics technology, mirroring Microsoft’s playbook but with its own e-commerce twist.
Also Read: What’s the Difference Between Technical and Fundamental Analysis?
Why These Stocks Still Shine in 2025
Both Microsoft and Amazon share a few critical traits that billionaires love:
- Strong balance sheets and consistent cash flow.
- Dominant positions in cloud computing and AI.
- Resilient business models that thrive through economic cycles.
- Proven leadership with a track record of innovation.
As the global economy becomes increasingly digital, cloud infrastructure and AI platforms will form the backbone of nearly every industry. That’s why these two stocks remain at the top of billionaire portfolios.
Actionable Takeaways for Individual Investors
- Think Long-Term: Billionaires invest with multi-year horizons. These aren’t short-term trades — they’re strategic bets on technological transformation.
- Follow the Fundamentals: Look for companies with expanding profit margins, strong free cash flow, and a clear competitive edge.
- Diversify Within Tech: Don’t just buy one “Magnificent Seven” stock — diversify across cloud, AI, and semiconductor sectors for balanced exposure.
- Watch Valuations: Even great companies can be poor buys at inflated prices. Use pullbacks to accumulate quality stocks.
Conclusion: Billionaires Bet Big on the AI-Driven Future
Billionaires aren’t chasing short-term fads — they’re doubling down on the foundations of the next digital era. Both Microsoft and Amazon are leading that charge through AI innovation, cloud dominance, and operational excellence.
For investors in 2025, the message is clear: follow the long-term trends that smart money believes in — and focus on the businesses building the infrastructure of tomorrow.
Frequently Asked Questions (FAQs)
Q1. Why do billionaires disclose their stock holdings?
They’re required to file Form 13F with the SEC every quarter, revealing large equity positions. This gives insight into where top investors are allocating capital.
Q2. Are Microsoft and Amazon still good buys in late 2025?
Yes, both remain leaders in AI and cloud computing — though investors should watch valuations and consider dollar-cost averaging.
Q3. What other stocks are billionaires watching in 2025?
Many are monitoring Nvidia, Alphabet (Google), and Meta, as these companies also dominate AI and digital infrastructure.
Q4. How much weight should retail investors give to billionaire trades?
Use them as research signals, not blind blueprints. Billionaires have different risk profiles and time horizons.
Q5. What’s the outlook for the cloud computing industry?
According to Statista, the global cloud market is expected to grow over 20% annually through 2030, driven by AI, automation, and digital transformation.
