Palantir Billionaire Peter Thiel Buys 2 Brilliant AI Stocks (Hint: Not Nvidia or Micron) | The Motley Fool

Billionaire entrepreneur Peter Thiel is best known as one of the five co-founders of Palantir Technologies. But he also runs the investment company Thiel Macro, which has 42% of its portfolio invested in two artificial intelligence stocks, both purchased in the second quarter.

• Amazon (AMZN -0.37%): 28% of the portfolio.
• Vistra Energy (VST +2.67%): 14% of the portfolio.

Thiel Macro beat the S&P 500 (^GSPC -0.02%) over the last six quarters despite holding zero stocks in two of those quarters. That makes Thiel a good source of inspiration for individual investors. Here’s what you should know about Amazon and Vistra.

Amazon: 28% of Thiel Macro’s portfolio

Thiel Macro’s largest position is Amazon. While the company is officially classified as part of the consumer discretionary sector due to its large retail footprint, it is frequently listed alongside big technology companies due to its sizable cloud computing businesses. In both cases, Amazon stands to benefit from the artificial intelligence revolution.

In retail, Amazon has developed hundreds of generative AI applications that optimize things like inventory placement, demand forecasting, and last-mile delivery. Amazon is also the largest operator of industrial mobile robots, and it’s using AI to make its fleet more efficient. For instance, next-generation Proteus robots can understand natural language, meaning human workers can give them instructions conversationally.

In cloud computing,…