10 AI Stocks Making Waves: GTC Highlights & Beyond

Page 9 of 9

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

Number of Hedge Fund Holders: 339

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. On March 18, Evercore ISI analyst Mark Mahaney maintained a “Buy” rating on the stock with an associated price target that remains the same at $270.00. The analyst quoted several factors that underscore Amazon’s strategic positioning and growth potential in the satellite internet sector.

In particular, Amazon’s Kuiper project is seen as the only realistic competitor to SpaceX’s Starlink in the LEO satellite internet broadband space considering the high barriers to entry.  These barriers exist due to limited spectrum availability and the industry’s capital-intensive nature. Satellite internet services like Starlink demonstrate a lucrative market opportunity, which implies that Project Kuiper could become a profitable venture for Amazon. The target market for Kuiper is the expansive $1 trillion terrestrial telecom and broadband sector. This significantly exceeds the $25 billion Sat Com market, justifying Amazon’s investment.

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 time frame. 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 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9