10 Best American Stocks To Buy and Hold in 2025

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

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) is the best American stock to buy and hold in 2025. It is a major technology company that not only operates an e-commerce platform but is also involved in streaming and cloud services. The company has taken the lead in integrating artificial intelligence into its AWS cloud platform, which is being appreciated by analysts and investors.

Amazon.com, Inc. (NASDAQ:AMZN) during the fiscal third quarter of 2024 grew its revenue by 11% year-over-year to reach $158.9 billion. The growth was fueled by the incorporation of new AI features. The e-commerce segment also grew by a staggering 60% during the same time, while the AWS segment drove profitability by adding around $10.4 billion to the net income. Scotiabank has raised its price target for the stock to $306 from the previous target of $246. The firm believes that large-cap stocks will continue to experience robust demand in 2025.

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 Amazon.com, Inc. (NASDAQ:AMZN) to grow, our conviction lies in the belief that 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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