Amazon holds AMD shares, and it's no big deal
Last week various outlets reported that Amazon had obtained a stake in AMD, filling a void in their news cycle but informing the public of nothing beyond that simple fact and leaving room for speculation. Critical thinking and a simple query to Amazon before publishing would’ve revealed the ultimate insignificance of the holding and its origin, Amazon’s investment in ZT Systems, acquired by AMD in 1Q25.
When the news broke, my first step was to look at Amazon’s 13F-HR form and compare it with the company’s previous filing. Indeed, Amazon holds AMD shares. Valued at $84 million, with AMD hardly starved for cash, it’s an inconsequential sum for both companies. Thus, the shares were unlikely to have been obtained as an investment by Amazon’s treasury or as part of a joint venture or other collaboration with AMD. After wracking my brain for a day, I realized they must’ve come from a company AMD acquired that Amazon held equity in (or had warrants for). The recent deal that sprung to mind was ZT, and a web search quickly turned up that Amazon indeed had backed them.
The bottom line is that it’s important to avoid being distracted by stories lacking substance. Thanks, though, for reading this one!
As an aside, Amazon also owns a chunk of two other chip companies, Astera and Marvell.
