10 Best American Stocks To Buy For Foreign Investors

Page 8 of 8

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

Number of Hedge Fund Holders: 308

Amazon.com, Inc. (NASDAQ:AMZN) is another big tech company requiring no introduction. The main reason why this stock is so popular among customers is because it offers exceptional diversification in AI and cloud computing to its customers, making its products and services among the most popular choices for cloud users.

In the company’s second-quarter 2024 earnings call, Amazon.com, Inc.’s (NASDAQ:AMZN) CEO, Andy Jassy, noted that the company’s AI business has been growing dramatically, and this trend is expected to continue because of one core belief held by Amazon.com, Inc. (NASDAQ:AMZN). This belief is that there is no one AI tool that can rule the world. Developers and consumers working with Amazon.com, Inc. (NASDAQ:AMZN) are thus offered diverse options in AI tools, which ensures that they get the best tool for the job when they partner with this company.

Another reason for the company’s stellar growth and rising popularity among investors is the profitability of its Amazon Web Services (AWS) business. Demand for AWS has been on the rise, particularly because of Amazon.com, Inc.’s (NASDAQ:AMZN) investments in generative AI projects. This is what resulted in AWS revenues growing to 18.8% year-over-year in the second quarter.

In total, 308 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter. Their total stake value in the company was $65.8 billion.

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: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

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 8 of 8