Joel Greenblatt built his reputation on the “Magic Formula,” a framework that focuses on buying companies with high earnings yield and strong returns on capital. It’s a simple idea, but it has consistently pointed toward high-quality businesses trading at reasonable prices. When Greenblatt leans into a theme, it usually reflects both quality and valuation discipline.
Through Gotham Asset Management, he has applied that framework to today’s most important technology trends. The fund’s top individual stock positions include NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Snowflake (NYSE:SNOW), according to the fund’s most recent portfolio disclosures. Each company plays a structural role in the AI infrastructure buildout. NVIDIA supplies the chips, Amazon provides cloud infrastructure, Snowflake enables data workloads, and Apple benefits from the downstream integration of AI into consumer devices. Together, they represent different layers of the same ecosystem rather than isolated investments.
NVIDIA: The Core AI Bottleneck That Still Isn’t Fully Priced
NVIDIA is Greenblatt’s most direct bet on the AI buildout. Gotham increased its position by about 90,000 shares last quarter (+3.15%), bringing the position to roughly 2.0% of the portfolio.
The business is still operating at a different level than anything else in tech. Q4 FY2026 revenue hit $68.1 billion, up 73% year over year, with data center revenue alone growing 75%. Even more telling, networking revenue surged 263%, showing that demand is expanding beyond just GPUs into full-stack AI infrastructure. At around 24x forward earnings, the stock may still be mispriced if AI spending remains elevated. NVIDIA is generating close to $100 billion in annual free cash flow, and hyperscaler demand continues to push the limits of supply. If that dynamic holds, earnings expectations may still be too low.
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Apple: The Installed Base AI Winner
Gotham added roughly 134,000 shares last quarter (+9.35%) to its Apple position last quarter, bringing Apple to about 1.5% of the portfolio.
The story here is less about explosive growth and more about durability. Apple generated $143.8 billion in quarterly revenue, supported by an installed base of over 2.5 billion devices. That base continues to drive high-margin Services revenue, which compounds steadily over time. What makes Apple interesting today is the AI integration cycle. Apple doesn’t need to win infrastructure. It just needs to embed AI into its ecosystem and drive upgrades across its device base. While many other Big Tech companies are pouring tens or hundreds of billions into AI CapEx, Apple only spent $6 billion in Capex across the entire business last year, leading to free cash flow growing 60% year-over-year.
Amazon: Reacceleration Meets Massive AI Investment
Amazon is a position that gives Gotham both growth and optionality. The fund added about 14,500 shares last quarter (+1.48%), bringing the position to roughly 0.8% of the portfolio. AWS is reaccelerating, with 24% growth in Q4 2025, its fastest pace in over a year. At the same time, advertising continues to scale quickly, generating over $21 billion in quarterly revenue.
Additionally, Amazon plans to spend around $200 billion on capex, largely tied to AI infrastructure. That level of investment signals that management sees a long runway ahead. At 32x forward earnings, Amazon looks fairly reasonably priced when you consider how much of the business is still scaling. If AWS growth continues to pick up while margins hold, the business’s earning power could meaningfully increase.
Snowflake: Strong Fundamentals, But Down 30% This Year
Snowflake is the most volatile bet in the group, but Greenblatt is still adding. Gotham increased its stake by about 33,500 shares last quarter (+3.51%), bringing the position to roughly 0.8% of the portfolio.
Product revenue grew 30% year over year, and remaining performance obligations rose 42%, giving the company solid forward visibility. Free cash flow margins expanding to 60% is another signal that the model is scaling well. What makes Snowflake interesting today is that the stock is down 30% year-to-date even as the business continues to grow and deepen its role in enterprise AI workloads. If Snowflake becomes a core data layer for AI applications, the current valuation could look more attractive in hindsight.
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For retirement-focused investors, whether these entry points still make sense. NVIDIA and Apple are not cheap, but cash generation is real and growing. Amazon’s free cash flow is temporarily compressed by capital expenditure, but the underlying profit engine is accelerating. Snowflake is the outlier: down 34.36% year to date despite strong fundamentals, creating tension between near-term price pressure and long-term earnings power.
Greenblatt’s presence in all four signals a methodology worth respecting: his approach is explicitly return-on-capital driven rather than momentum driven. The portfolio identifies businesses where the math on capital efficiency is compelling. For investors with a multi-year horizon, that is the right framework. The risk is that AI infrastructure spending decelerates faster than consensus expects, compressing multiples on all four simultaneously. That is real, but it is also a risk Greenblatt has priced into his positions.
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