10 Best Autonomous Driving Stocks To Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 286

Amazon.com Inc. (NASDAQ:AMZN), a global tech leader, dominates e-commerce, cloud computing, and streaming while owning Zoox, an autonomous ride-hailing startup acquired in 2020. Beyond robotaxis, Zoox aligns with Amazon’s logistics ambitions. As a top e-commerce operator with a vast delivery network, automating transportation could enhance efficiency and profitability in its retail operations.

Compared to market competitors, Zoox is rethinking what a vehicle can be, and it shows. The company’s robotaxi looks nothing like a traditional car. Instead, it’s designed purely for passengers, with a bidirectional cabin that can drive either way and four seats facing each other. “It’s a vehicle specifically made for people, not drivers,” says Jesse Levinson, Zoox’s co-founder and chief technical officer. “Without a human driver, we realized we could completely reinvent the riding experience.” With this approach, Zoox is aiming to lead the pack as it prepares to roll out driverless taxi rides in Las Vegas next year.

BofA Securities reiterated a Buy rating for Amazon.com Inc. (NASDAQ:AMZN) with a $230 price target, citing expectations of AWS revenue acceleration in 2025. The firm’s analysis highlights Amazon’s strong financials, including 12% revenue growth over the past year to $620 billion. Additionally, advancements in AWS’s quantum computing (Q capabilities) are driving AI benefits that encourage more businesses to transition to the cloud, bolstering long-term growth prospects.

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

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