In a busy earnings season filled with nonstop data releases, one detail slipped past most investors: Amazon sold its entire positions in two of the market’s most hyped technology names, IonQ and Advanced Micro Devices (AMD) during the quarter that ended in September.

This wasn’t rumor or speculation. The sale was revealed in Amazon’s latest Form 13F filing, submitted to the SEC on Nov. 14. Any institution or public company managing at least $100 million in assets must file this report, and Amazon qualifies with nearly $2.5 billion in assets under management as of Q3.

Even though Rivian Automotive still makes up over 94% of Amazon’s investment portfolio, the decision to completely exit both IonQ and AMD is raising eyebrows across Wall Street.

Below is a closer look at why Amazon may have made this surprising move and what it signals about the future of quantum computing and AI stocks.

Is the Quantum Computing Hype Cycle Peaking?
Why IonQ Became a Market Superstar

Few stocks have captured investor excitement like IonQ, a pure-play quantum computing company backed by major cloud platforms including:

Amazon Braket

Microsoft Azure Quantum

Google Cloud Marketplace

IonQ’s momentum was explosive. By mid-October, its market cap approached $30 billion, and shares had surged 272% over the last two years leading into Nov. 14.

Quantum computing is widely viewed as a generational breakthrough. Unlike traditional systems, quantum machines can perform calculations in seconds that would take classical computers decades. Consulting giant BCG estimates quantum computing could generate $450 billion to $850 billion in economic value by 2040.

So why would Amazon walk away now?

Why Amazon Sold All 854,207 IonQ Shares

1. Profit-Taking After a Huge Rally

IonQ jumped from the low $40s to the mid-$70s during Q3 alone. Amazon may have simply locked in gains during a steep run-up.

2. Quantum Computing Is Still Early and Historically Risky

No major emerging technology from the dot-com boom to 3D printing has avoided a bubble phase. Investors commonly overestimate early adoption and commercialization.

Despite its promise, there’s little evidence quantum computing is delivering broad commercial returns yet.

3. The Valuation Is Extremely Stretched

IonQ’s price-to-sales ratio hit nearly 147 as of Nov. 14.

For context:

During the dot-com bubble, market leaders typically peaked at a P/S of 30–40.

IonQ sits at almost 4× that level, even with rapid growth.

From a risk-reward standpoint, Amazon may have chosen discipline over optimism.

Amazon Also Exits AMD, Even as AI Demand Surges

Artificial intelligence has matured far more than quantum computing. The infrastructure behind AI—especially GPUs powering data centers—has become one of the hottest markets globally.

PwC estimates AI could add $15.7 trillion to global GDP by 2030.

AMD Looked Well-Positioned

The company has strong catalysts:

Soaring demand for AI-optimized GPUs

Nvidia facing supply backlogs

A new OpenAI partnership to deploy 6 gigawatts of AMD GPUs over several years

This made Amazon’s decision to sell all 822,234 shares—worth $117 million as of June 30—especially notable.

Why Amazon May Have Dumped Its Entire AMD Stake

1. Significant Short-Term Gains

Amazon opened its AMD position in Q1 at prices between $100–$120.
By Q3, the stock traded between $140–$175.

That’s a large return in just a few months.

2. Nvidia’s Dominance Is Hard to Ignore

While AMD has made progress, Nvidia’s:

H100 Hopper GPUs

Blackwell and Blackwell Ultra

currently lead the high-compute GPU market. Many enterprises still treat Nvidia as the default choice.

3. The AI Sector Could Also Be Forming a Bubble

Just like quantum computing, early excitement can outrun real-world adoption. Many companies are still experimenting with AI rather than fully integrating it.

If AI stocks correct, AMD is among the names most exposed.

4. Valuation Concerns

Even with revenue acceleration, AMD trades at a forward P/E of 38, which is:

27% higher than its five-year average forward earnings multiple

Amazon may view that premium as too rich in a volatile sector.

What Amazon’s Big Sell-Off Means for Investors

This move doesn’t necessarily signal a bearish view on AI or quantum computing long-term. Both fields have massive potential.

But Amazon’s decisions reinforce a few investing lessons:

1. Even Great Technologies Can Become Overpriced

Momentum doesn’t always equal value.

2. Expect Volatility in Cutting-Edge Sectors

Quantum and AI stocks will likely face boom-and-bust cycles as adoption evolves.

3. Large institutions often rebalance after big rallies

Amazon may simply be resetting risk exposure.

4. Always watch 13F filings, some of the most important moves hide in the footnotes

Institutional behavior can provide valuable market context.

Disclaimer

This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the potential loss of principal. Always conduct your own research or consult a licensed financial professional before making investment decisions.