10 Best US Stocks to Buy For Foreign Investors

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

Number of Hedge Fund Holders: 339

Average Upside Potential as of March 30: 40.02%

Jeff Bezos’ e-commerce titan, Amazon.com, Inc. (NASDAQ:AMZN), ranks first on our list of the best American stocks to buy. On March 17, Amazon Web Services announced that it had extended its collaboration with the Fitch Group, a market-leading financial information services provider, to enhance Fitch’s technological capabilities and use GenAI to digitally transform its operations worldwide. The collaboration will primarily utilize Amazon Q Developer to drive productivity among developers and enable code modernization.

Amazon.com, Inc. (NASDAQ:AMZN) ‘s net sales rose 10% to $187.8 billion for the fourth quarter, up from $170 billion in the prior year quarter. Operating income grew to $21.2 billion in Q4 2024, compared to $13.2 billion in Q4 2023. The company’s operating cash flow for the year climbed 36% to $115.9 billion, up from $84.9 billion for the twelve months ended December 31, 2023. Amazon’s free cash flow grew to $38.2 billion for the year, compared to $36.8 billion last year.

On February 7, Citi maintained a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) but cut the price target from $275 to $273. Analysts feel cautiously positive about AMZN, noting that Amazon Web Services met growth expectations. While Q1 2025 revenue and operating income guidance came in lower than market expectations, analysts see higher demand for AWS in the GenAI space as a potential catalyst for the stock.

According to Insider Monkey’s Q4 data, 339 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), up from 286 in the last quarter. Ken Fisher’s Fisher Asset Management is the company’s leading stakeholder, with over 45 million shares valued at $9.90 billion.

Overall, Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of the best US stocks to buy for foreign investors. 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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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