In this article, we will discuss the 10 Best Long Term Tech Stocks to Buy Right Now.
As per Deloitte, amidst uncertainties and economic turbulence, the broader technology industry can see growth in 2025, courtesy of elevated IT spending, AI investments, and a strong emphasis on innovation. Some analysts expect that global IT spending is expected to grow by 9.3% in 2025, with data center and software segments anticipating to increase at double-digit rates. Notably, worldwide spending on AI is projected to increase at a CAGR of 29% from 2024 to 2028.
Spending To Go Northwards, Says S&P Global
S&P Global sees global IT spending to increase by 9% in 2025, reflecting an improvement from the low 8% area in 2024, with AI spurring massive data center spending and enterprises renewing their investments in traditional hardware. The enterprises have been entering 2025 with a transition to the cloud, and they are slowly accelerating their investments in GenAI projects. The rating agency opines that hardware spending is expected to improve significantly in 2025.
The server shipments are expected to increase ~4% but revenue growth will be significantly higher considering high AI server ASPs. The firm sees network equipment and mobile telecom equipment makers returning to growth while storage sales are expected to grow ~4%. Hyperscale cloud providers are expected to sustain strong revenue growth of over 20%, and the rest of IT services can recover with a growth of ~5% after lackluster performance over the previous 2 years. S&P Global sees this recovery due to the early signs of demand stabilization during Q2 2024 and Q3 2024, with several IT service providers reporting growth in bookings for large transformation projects and improving annual contract values in critical verticals.
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Key Trends for 2025
In 2025, Capgemini expects AI and GenAI to have a significant impact on companies’ priorities and also on several adjacent technology domains, including robotics, supply chains, and tomorrow’s energy mix. Autonomous intelligent systems continue to be more prevalent in performing certain tasks. The next step will be the rise of a ‘super-agent,’ who can orchestrate and optimize several AI systems. In 2025, such advancements are expected to allow new AI ecosystems throughout industries.
The businesses have been navigating complex and unpredictable market conditions. As per Capgemini, technologies such as AI, data, blockchain, IoT, and connectivity with terrestrial-satellite networks can help enhance cost efficiency, resilience, agility, and sustainability of supply chains. Furthermore, additional regulatory and environmental constraints are expected to make this pivot important to ensure competitiveness, agility, and resilience.
With these factors in mind, let us now have a look at the 10 Best Long Term Tech Stocks to Buy Right Now.
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Source: Pixabay
Our Methodology
To list the 10 Best Long Term Tech Stocks to Buy Right Now, we used a screener to shortlist the stocks catering to the broader technology sector. Next, we filtered out the ones that have at least 10%-12% revenue growth over the past 10 years and are popular among hedge funds. Finally, the stocks are arranged in ascending order of their hedge fund sentiment, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Long Term Tech Stocks to Buy Right Now
10) ASML Holding N.V. (NASDAQ:ASML)
10-Year Revenue Growth: ~17%
Number of Hedge Fund Holders: 86
ASML Holding N.V. (NASDAQ:ASML) is engaged in developing, producing, marketing, selling, and servicing advanced semiconductor equipment systems for chipmakers. Analyst Krish Sankar of TD Cowen maintained a “Buy” rating on the company’s stock. As per the analyst, ASML Holding N.V. (NASDAQ:ASML)’s outlook for 2025 is positive, with expected sales growth and strong expansion in critical areas like EUV and services. Additionally, the company’s diversified customer base and ongoing technology advancements offer a healthy foundation for continued growth. Elsewhere, Bank of America Securities analyst Didier Scemama reiterated the bullish stance on the company’s stock, giving a “Buy” rating.
Scemama believes that ASML Holding N.V. (NASDAQ:ASML)’s long-term revenue prospects are strengthened by expected growth in the AI accelerator chip market. The expected expansion can fuel the company’s revenue prospects. Overall, the semiconductor industry continues to witness a period of significant transformation, fueled by higher demand for AI capabilities and a push towards more advanced manufacturing nodes. Therefore, with strong growth expected in the technology industry due to AI, high-performance computing, and increased semiconductor demand, ASML Holding N.V. (NASDAQ:ASML) is well-placed to witness expansion as chipmakers continue to invest in advanced lithography equipment.
Impax Asset Management, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“ASML Holding N.V. (NASDAQ:ASML) (Efficient IT, Netherlands) similarly to other semiconductor production-equipment makers, the share price has been under pressure on speculation the US may impose additional restrictions on China’s access to semiconductors and equipment. In addition, Intel’s results raised investors’ concerns that ASML would be disproportionately affected by a cutback on capex at Intel, which is a significant customer. The investment team believes these concerns are largely overblown given ASML’s dominant position in extreme ultraviolet (EUV ) lithography for advanced chips, which is where current investment is focused.”
9) ServiceNow, Inc. (NYSE:NOW)
10-Year Revenue Growth: ~32%
Number of Hedge Fund Holders: 110
ServiceNow, Inc. (NYSE:NOW) offers cloud-based solutions for digital workflows. BMO Capital analyst Keith Bachman gave a “Buy” rating on the company’s stock, setting a price target of $1,185.00. The analyst believes that the company’s Plus SKUs can fuel potential upside. Moving forward, the Agentic AI integration in Plus SKUs and the potential for higher consumption revenue are expected to act as factors that can result in variability and growth opportunities. Elsewhere, Oppenheimer analyst Brian Schwartz upped ServiceNow, Inc. (NYSE:NOW)’s price target to $1,200 from $1,150, keeping an “Outperform” rating.
As per the analyst, the business has been executing well and possesses healthy momentum with the AI business. As ServiceNow, Inc. (NYSE:NOW) continues to invest and enhance its AI capabilities, which include the development of agentic AI, the company remains well-placed to capitalize on the elevated demand for AI-powered enterprise solutions. With businesses ramping up digital transformation, the demand for workflow automation, AI-driven IT services and cloud-based enterprise solutions are expected to fuel growth for ServiceNow, Inc. (NYSE:NOW).
Investment advisory firm Ithaka Group released the Q4 2024 investor letter. Here is what the firm said:
“Founded in 2004, ServiceNow, Inc. (NYSE:NOW) has become the leading provider of cloud-based software solutions that defi ne, structure, manage and automate workflow services for global enterprises. ServiceNow pioneered the use of the cloud to deliver IT service management (“ITSM”) applications. These applications allow users to manage incidents and to plan new IT projects, provision clouds, manage application performance and build applications themselves. The company has since expanded beyond the ITSM market to provide workflow solutions for IT operations management, customer support, human resources, security operations and other enterprise departments where a patchwork of semi-automated processes have been used with varying success in the past. ServiceNow’s stock rose during the quarter, driven by strong fundamental performance and growing investor recognition of the company’s dominant position in monetizing AI workloads.”
8) Broadcom Inc. (NASDAQ:AVGO)
10-Year Revenue Growth: ~28.3%
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) is a global technology leader, which is engaged in designing, developing, and supplying a broad range of semiconductor and infrastructure software solutions. The company’s strategic positioning in high-growth markets, mainly AI and cloud computing, is expected to continue to act as a critical driver. Broadcom Inc. (NASDAQ:AVGO)’s continued focus on custom silicon solutions, mainly its Application-Specific Integrated Circuits (ASICs), offers significant advantages in the competitive AI chip market.
Custom silicon enables the development of highly optimized chips tailored to the particular needs and workloads of the customers, providing better performance and energy efficiency in comparison to more general-purpose AI chips. This approach allows Broadcom Inc. (NASDAQ:AVGO)’s customers to build software stacks on top of its hardware, improving AI processing capabilities and reducing overall expenses for large-scale AI deployments. Broadcom Inc. (NASDAQ:AVGO) is expected to benefit from the growth of the broader technology industry as demand for AI, 5G, and cloud computing fuels higher adoption of its networking, semiconductor, and software solutions.
Aristotle Atlantic Partners, LLC, an investment advisor, released its Q4 2024 investor letter. Here is what the fund said:
Broadcom Inc. (NASDAQ:AVGO) contributed to performance in the fourth quarter as the company’s third quarter results demonstrated continuing strength for its AI networking and custom accelerator semiconductor business. The company also gave long-term guidance for the service addressable market (SAM) opportunity for its AI-related business, indicating a market opportunity of $60 billion to $90 billion, which only includes contributions from its current three customers. This long-term outlook for AI semiconductor content exceeded investor expectations. Broadcom’s quarterly results also showed the company is ahead on its VMware integration timeline to achieve $8.5 billion in EBITDA, which will support long-term gross and operating margin expansion for the company.
7) Salesforce, Inc. (NYSE:CRM)
10-Year Revenue Growth: ~22%
Number of Hedge Fund Holders: 162
Salesforce, Inc. (NYSE:CRM) offers Customer Relationship Management (CRM) technology that brings companies and customers together. Bank of America Securities analyst Bradley Sills reiterated the bullish stance on the company’s stock, providing a “Buy” rating on February 14. The analyst’s rating is backed by a combination of factors, which include the strong performance and growth potential of Salesforce, Inc. (NYSE:CRM)’s core products and new initiatives. As per the analyst, there is strong deal activity and a healthy outlook for the company’s Sales and Service Clouds, and Agentforce pilots continue to gain traction.
Furthermore, new use cases for Agentforce, including call summarization and semantic search, have started emerging, driving Salesforce, Inc. (NYSE:CRM)’s growth potential. Also, the company’s data cloud deals have been demonstrating continued strength, helping the data needs of Agentforce. Overall, the analyst believes that Salesforce, Inc. (NYSE:CRM)’s stock is well-placed to benefit from a more favorable software spending environment and a healthy contribution from Agentforce. The company’s Data Cloud offering, enhanced by AI capabilities, is anticipated to unlock new use cases and value propositions for enterprise customers.
Montaka Global Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“There are multiple structural trends in the enterprise software space, including (i) the ongoing cloud migrations and digital transformations of enterprises, and (ii) the infusion of AI into software applications.
While the former remains in its early innings (80-85% of enterprise workloads still reside ‘on-premise’ – many of which will ultimately move to public clouds), the latter remains in its infancy.
Given all the hype of late, it’s hard to fathom that large-scale deployments of AI-based enterprise applications have barely even started. It’s all still to come. And we believe 2025 will be the first year that we really start to see meaningful deployments and adoption of these kinds of applications.
Consider another of our top 10 holdings, Salesforce, for example. Its revenue growth is at a cyclical low. Indeed, at just +8% per annum, as reported in the company’s most recent quarter, its rate of revenue growth has never been lower.
But in 2025, not only will price increases that were announced two years ago boost Salesforce, Inc.’s (NYSE:CRM) revenue growth, but the year will also mark the early stages of adoption of the company’s new ‘Agentforce’ (released only weeks ago). This is a new platform that lets businesses build and deploy their own custom AI agents to automate tasks, improve efficiency, and enhance customer experiences…” (Click here to read the full text)
6) Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
10-Year Revenue Growth: ~14.2%
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is engaged in manufacturing, packaging, testing, and selling integrated circuits and other semiconductor devices. Morningstar believes that the company’s leadership in node advancement stems from the ability to correctly and consistently prioritize correct areas in which to innovate for nodes while, at the same time, maintaining fiscal discipline. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s leading position in advanced processes can result in attracting and retaining more customers, stable utilization of expanding production capacities, and reduce production costs, leading to increased returns than competitors due to the cost advantage and ensuring enough profits to finance R&D and capex on subsequent nodes.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is expected to earn higher gross margins for the foreseeable future due to the economies of scale and premium pricing, which are aided by cutting-edge process technologies. Morningstar also expects that the company can see a top-line CAGR of 15.5% over the upcoming 5 years. As per the firm, IoT and automotive applications are expected to act as sources of higher demand for newer specialty products.
Wedgewood Partners, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was another top contributor to performance during the quarter and for the year. The Company’s earnings growth dramatically accelerated compared to last year as the Company’s wafer fabrication and packaging volumes soared in 2024. In addition, the Company customer prices rebounded in the face of more normalized capital expenditures. The Company maintains a near-monopoly in the fabrication of nearly every new AI accelerator brought to market over the past two years. They continue investing tens of billions to build and 7ill future capacity with orders for what seems to be insatiable hyperscale demand for accelerated computing. The stock ended the year trading at a consensus forward earnings multiple that is several points lower than large cap growth benchmarks, despite the Company’s dominant position in the most important industry that is driving one of the largest technological shifts in a generation.”
5) NVIDIA Corporation (NASDAQ:NVDA)
10-Year Revenue Growth: ~37.8%
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) offers graphics and compute and networking solutions. Tristan Gerra, an analyst from Robert W. Baird, maintained a “Buy” rating on the company’s stock. The associated price target stood at $195.00. The analyst’s rating is backed by a combination of factors reflecting NVIDIA Corporation (NASDAQ:NVDA)’s healthy market positioning and future growth potential. As per the analyst, the company’s advancements in AI data centers and their healthy relationships with renowned enterprise customers such as Ali and Tencent continue to drive the surge in orders.
Furthermore, the company’s integration of DSP on ASIC also showcases its support for emerging technologies such as CPOs and LPOs. Overall, the firm’s price target is backed by NVIDIA Corporation (NASDAQ:NVDA)’s healthy positioning and performance gains. The AI infrastructure build-out has been a major tailwind for the company. Notably, cloud service providers, consumer internet companies, and sovereign states continue to fuel demand for AI computing power. These favourable measures are expected to help NVIDIA Corporation (NASDAQ:NVDA)’s growth trajectory over the upcoming years.
Mairs & Power, an investment advisor, released the Q4 2024 investor letter. Here is what the fund said:
“We prefer to invest in our backyard, as Minnesota and the Upper Midwest are blessed with a rich and diverse business community. As such, seven out of our 10 largest relative bets are based in our region (MN, WI, IA, SD, ND, IL). That said, we are unafraid to look beyond our geographic area if we find exceptional opportunities. In 2019, we found such an opportunity in a graphics processing technology company called NVIDIA Corporation (NASDAQ:NVDA). At the time, we felt NVIDIA would be a good way to leverage the growing interest in video games, as most of its chips were popular amongst “gamers” to enhance graphics. But what really grabbed our interest was its smaller, albeit faster-growing, data center business that was positioned to benefit from the emergence of high-performance computing, such as deep learning and machine learning, and the related field of AI. The rest, as they say, is history. NVIDIA is one of a number of Technology holdings that we have added over the past decade, which has raised eyebrows since our Firm was well-known for avoiding the Tech Bubble in the late 1990s. Unlike the dot-com companies that operated at the turn-of-the-century, many of today’s technology companies are established businesses with significant cash flows. We have argued, and continue to argue, that many of these investments are perfectly aligned with our investments process in that they embody durable competitive advantages, above-average growth prospects, and excellent management teams.”
4) Alphabet Inc. (NASDAQ:GOOGL)
10-Year Revenue Growth: ~18.1%
Number of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOGL)’s leadership in AI technology has been a critical driver of its success. It has made numerous strides in integrating AI throughout its product portfolio, with positive user satisfaction and monetization rates comparable to the traditional search. The company’s extensive integration of AI throughout its product ecosystem places it well for sustained growth and innovation. The incorporation of Gemini AI into its core products highlights Alphabet Inc. (NASDAQ:GOOGL)’s commitment to enhancing user experiences via AI.
In search, AI advancements have resulted in the improvement in the company’s ability to understand and respond to difficult queries, which can help Alphabet Inc. (NASDAQ:GOOGL) maintain leadership in the broader search market. Furthermore, Google Cloud’s emphasis on AI infrastructure and solutions continues to attract enterprise customers and fuel revenue growth in the cloud segment. Overall, Alphabet Inc. (NASDAQ:GOOGL) remains well-placed to benefit from the broad-based growth in the technology industry as growth in cloud computing, AI, and digital advertising fuels higher demand for its services.
Qualivian Investment Partners, an investment partnership focused on long-only public equities, published its Q3 2024 investor letter. Here is what the fund said about Alphabet Inc. (NASDAQ:GOOGL):
“Alphabet Inc. (NASDAQ:GOOGL): Q2 2024 revenues and EPS beat expectations, with total revenues growing 14%, Search ad revenues growing 14%, YouTube ads growing 13%, and Google Cloud revenues growing 29%. Revenue growth in the quarter constituted a continued sequential improvement from earlier quarters in the year, suggesting a continued rebound in Alphabet’s core business except for YouTube ad revenues, which missed expectations and showed deceleration in the growth rate as compared to Q1 when it grew 21%. Operating margins improved by 310 bps vs. the same quarter last year.
Management continued to highlight developments with their generative AI program, which is seen as a foundational platform with opportunities across their businesses but particularly in search and cloud. However, this comes with material capex investment well ahead of the expected economic benefits from Gen AI, and the level of spending is leading investors to worry about the ROI on that spend for Alphabet, as well as the other hyperscalers (Microsoft and Amazon). We continue to have confidence in Alphabet’s ability to generate strong revenue, earnings, and cash flow growth well above the S&P 500’s in the years to come and view it as a core holding for the long term.”
3) Meta Platforms, Inc. (NASDAQ:META)
10-Year Revenue Growth: ~29.4%
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) is building technology that helps people connect and share, find and build communities, and grow businesses. Benchmark analyst Mark Zgutowicz upgraded the company’s stock to “Buy” from “Hold,” providing a price objective of $820, lauding a strong 2025 core business outlook. As per the analyst, Meta Platforms, Inc. (NASDAQ:META)’s AI infrastructure investments and core ad strength provide several growth catalysts for 2025 and beyond. Elsewhere, Morningstar expects the company’s sales to grow at a CAGR of 12% for the upcoming 5 years, courtesy of an increase in average revenue per user, and higher user growth.
The firm expects Reality Labs sales to increase at a double-digit rate over the upcoming 5 years. Meta Platforms, Inc. (NASDAQ:META)’s core advertising business continues to benefit from improved ad targeting and content recommendation algorithms and a secular increase in digital advertising spending. Thanks to the company’s scale, it can access high-quality user data, which it can package and sell to advertisers. Meta Platforms, Inc. (NASDAQ:META) has an opportunity to fuel more ad inventory growth, through new products including Threads while, at the same time, enhancing its ads monetization on more nascent features like Stories and Reels.
Rowan Street Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.
For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.
Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)
2) Microsoft Corporation (NASDAQ:MSFT)
10-Year Revenue Growth: ~10.8%
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) is engaged in developing and supporting software, services, devices, and solutions. The company’s early and aggressive investments in AI place it well in the transformative technology. Furthermore, AI integration throughout Microsoft Corporation (NASDAQ:MSFT)’s product portfolio, from Azure cloud services to productivity tools such as M365 Copilot, results in creating several avenues for revenue growth. With AI becoming increasingly central to business operations, the company’s comprehensive AI offerings are expected to drive consistent demand for services and strengthen its market position.
Microsoft Corporation (NASDAQ:MSFT)’s Azure platform is expected to drive the next leg of growth. The company’s healthy enterprise relationships, comprehensive suite of cloud services, and integration with significantly-used productivity tools provide it with a competitive edge. Overall, the company is well-placed to benefit from the growth of the broader technology industry via higher demand for AI, cloud computing, and enterprise software solutions. Microsoft Corporation (NASDAQ:MSFT)’s strong presence in AI-powered services, expansion of Azure cloud, and enterprise productivity tools place it for sustained revenue growth.
Mairs & Power, an investment advisor, released the Q4 2024 investor letter. Here is what the fund said:
“Unlike the dot-com companies that operated at the turn-of-the-century, many of today’s technology companies are established businesses with significant cash flows. We have argued, and continue to argue, that many of these investments are perfectly aligned with our investments process in that they embody durable competitive advantages, above-average growth prospects, and excellent management teams.
A perfect example is Microsoft Corporation (NASDAQ:MSFT), which has grown to become the largest holding in the Growth Fund. Microsoft has a near monopoly on the office software productivity market with its Microsoft Office Suite. The company’s Azure platform is a leader in cloud computing and has been steadily gaining share. Thanks to its Office and Azure products, the company is deeply embedded within many enterprise IT ecosystems. Therefore, it should be well-positioned to expand its presence within its customer base, as it rolls out premium-price AI solutions. The company is not resting on its laurels and plans on spending an astounding $80 billion in 2025 to build out AI data centers.”
1) Amazon.com, Inc. (NASDAQ:AMZN)
10-Year Revenue Growth: ~21.7%
Number of Hedge Fund Holders: 338
Amazon.com, Inc. (NASDAQ:AMZN) remains a critical player in the technology sector as its core businesses, such as cloud computing, consumer electronics, and AI-driven e-commerce, are aided by advanced technology and data analytics. The company’s revenues are well-placed for a huge bounce due to its investment in GenAI, as per analyst John Blackledge of TD Cowen. The analyst further added that GenAI business Anthropic, known for the Claude AI service, is expected to play a critical role in Amazon.com, Inc. (NASDAQ:AMZN)’s future growth.
The company’s investments in AI can result in significant synergies throughout its various business segments. For AWS, advanced AI capabilities might bring more enterprise customers and fuel higher-margin services, strengthening Amazon.com, Inc. (NASDAQ:AMZN)’s position as a leader in cloud computing. Anthropic and AWS have joined hands to provide AWS customers early access to the ability to do fine-tuning with their own data on Anthropic models, a customization benefit that AWS customers will enjoy for each model for a period of time on new Claude models. Therefore, growth in the broader technology industry is expected to drive Amazon.com, Inc. (NASDAQ:AMZN)’s expansion by fueling demand for AWS cloud services, automation, and AI.
Fred Alger Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Amazon.com, Inc. (NASDAQ:AMZN) is a renowned online retailer and leader in cloud computing. The company’s Amazon Web Services (AWS) division offers utility-scale cloud solutions that support corporate America’s digital transition. During the quarter, Amazon’s shares contributed to performance as the company reported better-than-expected fiscal third-quarter results, with revenues and earnings beating analyst estimates. Operating margins expanded to 11%, driven by efficiency gains in logistics and robust AWS performance. Notably, AWS revenue growth accelerated during the quarter, along with recording its highest-ever operating margin of 38.1%, driven by easing cloud cost optimizations, renewed workload migrations, and an increasing contribution from AI workloads. On their earnings call, management highlighted plans to increase capital expenditures to enhance their technology infrastructure, catering to the surging demand for AI-driven computing.”
While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued 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.
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