Billionaire Ken Griffin has more than tripled his investment in this artificial intelligence (AI) stock. Should you buy it too?

Ken Griffin founded Citadel in 1990, which is now the most successful hedge fund of all time. Through Citadel, Griffin has amassed a personal fortune of $37 billion.

Today, Citadel's portfolio is filled with artificial intelligence (AI) stocks, which make up more than half of its top 50 holdings. However, Griffin seems to be particularly bullish on one stock in particular. The billionaire has more than tripled his investment in this AI stock.

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Amazon (NASDAQ resonance code: AMZN)It was Citadel's fourth largest holding at the end of 2023. The hedge fund had a much larger stake in the e-commerce and cloud services leader than it did at the end of September. Griffin bought 4.32 million shares of Amazon during the fourth quarter, increasing its position by nearly 227%.

The billionaire hedge fund manager has a long history with Amazon. He first took a position in the stock in the second quarter of 2013. Griffin sold nearly 97% of those shares in the second quarter. However, he later increased Citadel's stake in Amazon again. However, in the fourth quarter of 2016, Citadel completely exited its position in the stock.

Griffin didn't have to wait too long, buying Amazon stock again in the first quarter of 2017 and then adding to his Citadel holdings for the rest of the year.

Amazon was a big winner for Griffin and Citadel. In the first leg of the hedge fund's portfolio, Amazon's stock price soared over 200%. Since the end of the first quarter of 2017, the stock has risen more than 300%.

Amazon's Artificial Intelligence Arsenal

Griffin probably didn't think of Amazon as an AI stock when he first bought it in 2013. But the company had already invested heavily in AI technology when it did. Decades ago, Amazon began incorporating machine learning, a form of AI, into its e-commerce platform's product recommendations. It also launched Alexa, a virtual assistant powered by AI, in late 2014.

However, I suspect that AI will be on the horizon by the time Griffin backtracks to buy more Amazon stock in the fourth quarter of 2023. In particular, the AI boom should lead to huge long-term benefits for Amazon Web Services (AWS).

AWS launched the Amazon Bedrock service last year to help organizations quickly build generative AI applications in the cloud. bedrock gives customers access to Anthropic, Cohere,Meta PlatformsThe company's AI models include Stability AI, Amazon's own Titan large-scale language model, and a variety of AI models.

Amazon isNvidia The company is also one of the major customers of the company, which uses its graphics processing units (GPUs) extensively. The company also builds its own artificial intelligence chips with an attractive price/performance ratio.

Artificial intelligence also remains key to Amazon's e-commerce business. Earlier this year, Amazon launched Rufus, an AI shopping assistant that communicates with customers to help them find the products that best meet their needs.

Should You Buy Amazon Stock Too?

No one should buy any stock just because Griffin or another famous investor buys it. Your risk tolerance and investment objectives may (and probably will) be very different from those of a billionaire hedge fund manager.

That said, I think Amazon is a good stock for many investors to buy right now - and not just because of its AI opportunity. Amazon's profitability continues to rise. The company has found a great, fast-growing revenue stream through advertising. Even without the lure of AI, customers will continue to move more applications and data to the cloud. In the coming years, Amazon should make a lot of money for many investors, including those of us who are far from being billionaires.

Should you invest $1,000 in Amazon right now?

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Randi Zuckerberg, former Facebook Marketplace Director of Mass Development and Spokeswoman, and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's Board of Directors, and John Mackey, former Chief Executive Officer of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool. John Mackey, former Chief Executive Officer of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's Board of Directors, and Keith Speights serves on the boards of Amazon and Meta Platforms. The Motley Fool has a disclosure policy.

Billionaire Ken Griffin has more than tripled his investment in this artificial intelligence (AI) stock. Should you buy it, too? This post was originally published by The Motley Fool.