10 Best Stocks to Buy and Hold For 5 Years

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

Number of Hedge Fund Holders: 308

Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of the best stocks to buy and hold for five years. The technology company is an e-commerce giant that also provides streaming and cloud computing services.

The company has not only been actively involved in the development of AI hardware and software but has also signed partnerships with the government and AI startups. Similarly, in a rather interesting development, on October 16, Amazon.com, Inc. (NASDAQ:AMZN) announced its plans to invest in nuclear energy to meet the power demand from AI data centers.

Amazon.com’s (NASDAQ:AMZN) growth trajectory in AI hardware and software is exceptional. More recently, on November 4, Amazon.com, Inc. (NASDAQ:AMZN) announced the general availability of the company’s latest and most intelligent models in the Claude family in Amazon Bedrock, a fully managed service allowing people to build AI applications. Coming to its e-commerce business, the company launched powerful generative AI features in Q3 2024 such as Rufus, a shopping assistant, and Project Amelia, an AI assistant for sellers.

Amazon.com, Inc. (NASDAQ:AMZN) has significant growth potential and to achieve such the company is working tirelessly. Over the next few years, the company is not only poised to become a fully functional AI company but it is also on track to become carbon-free.

Diamond Hill Select Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter:

“Among our top individual contributors in Q2 were Amazon.com, Inc. (NASDAQ:AMZN), Texas Instruments and Mr. Cooper Group. Internet retail and cloud infrastructure company Amazon is benefiting from strong profitability, particularly in its Amazon Web Services (AWS) business. Shares also received a boost amid growing optimism around the demand for AWS as Amazon customers’ investments in generative AI projects continue growing.”

While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that certain 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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