10 Best Stocks to Buy For Long Term Growth

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

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of the best stocks to buy for long term growth. The technology company is an e-commerce giant and an emerging leader in cloud computing services.

The company has been actively involved in the development of AI hardware and software recently. In addition to that, the company has formed crucial partnerships with the government and AI startups. On November 22, Amazon.com, Inc. (NASDAQ:AMZN) announced that it was investing another $4 billion in Anthropic, OpenAIs biggest rival, bringing the total investment by AMZN to $8 billion. AWS will also function as the primary training partner to Anthropic.

On the product development front, 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 with complete autonomy.

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 poised to become a fully functional AI company.

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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