10 AI News Making Waves on Wall Street

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1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) plays a significant role in AI development, applying the technology to enhance shopping experiences, entertainment, and operational productivity. Moreover, it has also invested significantly in the development of technology.

On January 17, BMO Capital analyst Brian Pitz raised Amazon’s (NASDAQ:AMZN) price target to $265 from $236, keeping an Outperform rating. The firm expects AWS to grow faster in 2025, with a 20% increase over the previous 17%, driven by Bedrock helping companies use more IT and AI services. The analyst also mentioned that AWS’s biggest customers could move more of their work to the cloud. In retail, BMO’s checks show strong demand for Amazon’s Same-Day/Next-Day delivery, which could lead to more frequent purchases and increased cash flow.

While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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