10 AI News That You Should Not Miss

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

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) is leading advancements in artificial intelligence, utilizing the technology to transform the way we shop, enjoy entertainment, and manage operations.

Business Insider reported that AWS is reducing spending on ZT Systems, a supplier of server and networking equipment, as it increasingly designs its own data center components to cut costs and raise efficiency. AWS spent nearly $2 billion on ZT Systems in 2022, but internal documents and employee statements suggest a shift toward custom hardware, potentially impacting this partnership. Despite the reduction, AWS maintains its business relationship with ZT Systems and plans significant capital investments in data centers for 2025. This move aligns with a broader trend among tech companies like Google and Nvidia to develop in-house hardware for better control and cost savings.

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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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