10 AI Stocks on Wall Street’s Radar After DeepSeek Breakthrough

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1. Amazon.com Inc (NASDAQ:AMZN)

Number of Hedge Fund Investors: 286

Alex Kantrowitz from the Big Technology podcast said in a latest program on CNBC that AI as a whole will benefit from DeepSeek’s breakthrough. According to CNBC, the analyst believes Amazon.com Inc (NASDAQ:AMZN) will be one of the “winners” of the DeepSeek advancements while OpenAI and Anthropic will be impacted negatively.

“If you believed in the AI story before last week, you believe in it even more today. The mere fact of the matter is that building AI has just become far cheaper than it was previously. And if you’re, let’s say, a Box of the world or a ServiceNow of the world, and your strategy was around implementing AI into your product, this is the best thing that’s ever happened to you.”

Vulcan Value Partners stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:

“There were five material contributors to performance: Amazon.com, Inc. (NASDAQ:AMZN), Salesforce Inc., Live Nation Entertainment Inc., Carlyle Group Inc., and Alphabet Inc. Amazon.com is a dominant, world class company with powerful secular tailwinds in place including its e-commerce penetration, digital advertising growth, and the cloud transition. Amazon reported strong results during the quarter. The market is beginning to reward the company for its untapped margin opportunity in the core retail business as its consolidated operating margins expanded.”

While we acknowledge the potential of AMZN, our conviction lies in the belief that under the radar 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.

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. You can also look at the Top 10 AI Stocks That Are Being Monitored By Wall Street and the Top 10 AI Stocks Dominating Wall Street.

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