10 AI Stocks Dominating Wall Street

1.  Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 286

Amazon.com Inc (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions. Some of the biggest analyst calls for Friday, February 7^th, were for Amazon Inc. Several analysts remain bullish on the stock despite the company’s disappointing guidance for the current period. The company reported better-than-expected earnings and revenue for the fourth quarter, but guidance for Q1 was well short of the midpoint of Wall Street’s outlook. The company said it sees Q1 revenue of between $151 billion and $155 billion, while analysts were anticipating $158 billion. The company’s lackluster cloud revenue growth further intensified investor concerns that Big Tech’s massive artificial intelligence investments are taking longer to deliver returns.

Nevertheless, analyst Brian Nowak of Morgan Stanley has maintained a “Buy” rating and retained the price target of $280.00. Nowak’s rating stems from the company’s strategic advantages and potential for growth. The firm anticipates logistics and cost efficiency improvements due to advancements in robotics and GenAI (Generative AI) technologies. This will in turn boost Amazon’s retail operations significantly. Similarly, Amazon Web Services (AWS) is displaying profitable growth and tends to boost even further as the demand for GenAI inference expands. Even though current investments are impacting near-term free cash flow, the emphasis on long-term returns and Amazon’s leadership in GenAI applications render the company favorable for future success.

“We now turn to AMZN, which, in our view, is still the most under-appreciated GenAI winner of our mega-caps”.

-Brian Nowak.

While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some 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 Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

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