10 Best Major Stocks to Buy According to Hedge Funds

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

No. of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) is a leading technology company with the largest e-commerce and cloud computing businesses in the world. The company also offers other services, including digital streaming and artificial intelligence solutions.

On February 12, Loop Capital lifted the price target on AMZN shares from $275 to $285, keeping a Buy rating on the stock. The firm’s price target upgrade follows AMZN’s Q4 2024 beat last week, indicating a bullish outlook on Amazon Web Services (AWS) and Amazon’s AI strategy, which is positively influencing its business, from cloud computing to advertising to e-commerce. The company plans to invest over $100 billion in AI initiatives in 2025, and a massive CapEx will go toward supporting AI for AWS.

The company’s AI-related AWS business is growing at triple-digit percentage rates annually. Amazon’s CEO Andy Jassy sees the AI development as a once-in-a-lifetime opportunity. This is a major reason analysts remain bullish on AMZN.

While we acknowledge the potential of 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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