10 AI Stocks Trending on News and Analyst Ratings

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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. On February 11, CMB International Securities analyst Saiyi He maintained a “Buy” rating on the stock and set a price target of $268.00. The firm has noted Amazon’s strong financial performance and growth potential for the rating, stating that its 4Q24 results demonstrated a robust increase in revenue and noteworthy growth in operating profit. Cost optimization and operational efficiency improvements in both North America and AWS segments have led to this growth.

Moreover, the company has also been extending efforts towards scaling and cost optimization, which eventually looks good for operating profit growth. Saiyi He also noted Amazon’s expansion in advertising revenue, and while there may be challenges such as foreign exchange headwinds and incremental investments slowing margin expansion in the AWS segment, the company’s innovation and infrastructure investment are anticipated to help sustain its competitive edge.

Firms such as JP Morgan are also bullish on the stock, citing that “AMZN has a very clear path to AI monetization through AWS, and it remains early in what should be an extended cycle of innovation and technology transformation.”

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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