10 AI Stocks Surging on News and Analyst Calls

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1.  Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 338

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 February 16, TD Cowen analyst John Blackledge maintained their bullish stance on the stock, giving a “Buy” rating with a $265 price target. One of the reasons for Blackledge‘s buy rating is Amazon Web Services (AWS) expected growth in generative AI (GenAI) revenue. He noted that he expects growth to be approximately $2.8 billion in 2024 to $56.3 billion by 2030. This reflects a compound annual growth rate of 51% from 2025 to 2030.

Besides the revenue growth in GenAI, Blackledge also acknowledged Anthropic’s role in AWS’s GenAI revenue stream, with half of AWS’s GenAI revenue attributed to Anthropic in 2024. He further forecasted that based on differing scenarios, AWS’s GenAI revenue from Anthropic could reach between $7 billion and $17 billion by 2027. In addition, capital expenditure for AWS is anticipated to rise to approximately $76 billion in 2025. This is driven by the need to build out GenAI infrastructure to meet increasing AI demand.

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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