In this article, we will take a detailed look 10 Buzzing AI Stocks This Week.
Paul Hickey, Bespoke Investment Group co-founder, said while talking to CNBC in a latest program that despite the market gains still concentrated in a few names, he’s bullish short and long term because of AI.
“The longer term play is the AI trade. This is an AI bull market. Every bull market has a theme, and ChatGPT was to AI what Netscape and AOL were to the internet.”
Hickey also mentioned the possible scenario where market gains would start to broaden out.
“ChatGPT didn’t invent AI; it made it tangible for consumers and businesses, just like Netscape with the internet. It caused, you know, made it a lot more practical on the part of businesses and the consumer. So I think in that respect, there’s a lot more investment to go, and we’ve seen the infrastructure stocks in AI benefit. But even just last week, some of these software names—and we’re going to slowly start to see that broaden out to the rest of the economy.”
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For this article, we picked 10 AI stocks currently buzzing on the back of latest news and analyst ratings. With each company we have mentioned the number of hedge fund investors. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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10. Hewlett Packard Enterprise (NYSE:HPE)
Number of Hedge Fund Investors: 64
Talking about Hewlett Packard Enterprise (NYSE:HPE)’s latest results during a program on CNBC, Jim Cramer said he liked the quarter:
“I like the quarter very much. I think Antonio Neri is doing a terrific job. One thing people should recognize is that a lot of this comes from their AI business. They mentioned $6.7 billion in cumulative orders since Q1 for the fiscal year and a backlog of AI systems worth $3.5 billion.”
However, Cramer pointed to something he found “cryptic” in the earnings call:
“There was also something cryptic mentioned—they said they debooked a large order, $700 million, during the same quarter due to concerns with a specific customer. Everyone is now scrambling to figure out who that customer is.”
Wall Sreet is pitching on on Hewlett Packard Enterprise (NYSE:HPE)’s results.
Citi upgraded Hewlett Packard Enterprise (NYSE:HPE) to Buy from Neutral and raised its price target to $26 from $23, expecting the company to benefit from improving demand in server and enterprise networking, as well as expanding AI opportunities. “While AI orders and revenues can be lumpy, we see potential for a stronger contribution from enterprise AI and sovereigns, which bodes well for revenue momentum and margins moving forward,” Citi analyst Asiya Merchant wrote in a note to clients. “Along with an improved outlook for core enterprise infrastructure spending and potential EPS accretion from the Juniper acquisition, with management confident in closing the deal by early 2025, we are increasingly optimistic.”
Deutsche Bank analyst Matt Niknam had a more cautious view, describing the results and guidance as an “incremental positive in the context of the current valuation.” Hewlett Packard Enterprise (NYSE:HPE)’s server business is seeing momentum due to both AI and traditional servers, although AI servers are negatively impacting gross margins, which fell to 30.9%, the lowest level since Q4 2020, Niknam, who maintains a Hold rating and $22 price target, said.
Hewlett Packard Enterprise (NYSE:HPE)’s Hybrid Cloud segment provided “the bulk of the upside surprise this quarter,” while its Intelligent Edge (networking) business is relatively stable after a prolonged period of inventory digestion at customers. On the negative side, the forward guidance includes a sequential decline in AI server sales, partly due to delays from Hewlett Packard Enterprise (NYSE:HPE)’s Blackwell and “de-booking” to the tune of roughly $400 million, Niknam added.
“While the F1Q outlook effectively matches consensus pre-print, we still consider the results ‘good enough’ in light of a fairly discounted valuation (10x CY26E EPS) relative to HPE’s near-term growth prospects,” he wrote.
9. Marvell Tech Inc (NASDAQ:MRVL)
Number of Hedge Fund Investors: 70
Marvell Tech Inc (NASDAQ:MRVL) shares are buzzing as the company posted strong third-quarter results.
“Next year, both custom AI silicon and electro-optics are expected to experience significant growth, leading to substantial upside to our prior estimates,” Needham analyst N. Quinn Bolton wrote in a note to clients.
Bolton added that Marvell Tech Inc (NASDAQ:MRVL)’s AI revenue is now projected to surpass the previous $1.5 billion target by “hundreds of millions of dollars,” as the company’s two main customers for custom silicon — believed to be Amazon (AMZN) and Google (GOOG) (GOOGL) — are ramping up, with Amazon likely driving much of the upside.
Marvell Tech Inc (NASDAQ:MRVL) is rapidly positioning itself as an AI-first company, with its custom silicon business accounting for 73% of Q3 revenues, up from 39% during the same period last year. Marvell has a five-year agreement with Amazon (AMZN) AWS, helping Amazon design its Trainium and Inferentia ASICs, and providing a range of optical interconnect products.
Marvell Tech Inc (NASDAQ:MRVL) is now focusing on the AI opportunity, as evidenced by the recent restructuring charges, and is progressing through the design phase of its 2nm platform.
8. Tesla Inc (NASDAQ:TSLA)
Number of Hedge Fund Investors: 99
BofA Securities raised its price target on Tesla (NASDAQ:TSLA) to $400 from $350 and maintained its rating after a visit to its gigafactory in Austin, Texas.
“The visit gave us increased confidence that TSLA is well-positioned for growth in 2025 and beyond with its core EV business, the launch of its robotaxi offering, and its investments in Optimus,” said analyst John Murphy and his team.
The analysts also noted that Tesla Inc (NASDAQ:TSLA) has opportunities to improve margins, which are currently mainly driven by hardware, but will shift more towards margin-accretive software with the growth in FSD, premium connectivity, and charging.
BofA highlighted that Tesla Inc (NASDAQ:TSLA)’s Full Self-Driving (FSD) technology is expected to require an intervention only once every 10,000 miles, bringing it closer to the point where Tesla could safely launch its (monitored) robotaxi business. This compares favorably with Waymo, which requires an intervention every 17,000 miles.
Polen Focus Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q3 2024 investor letter:
“The largest relative detractors during the quarter were Apple, Airbnb, and Tesla (not owned). We’ve spoken at length about our rationale for not owning Tesla, Inc. (NASDAQ:TSLA). In short, the market seems to be pricing in a lot of positive optionality for this company in the near-to-intermediate term (and particularly a fully autonomous fleet of electric vehicles in the medium term). What exists today is an automobile manufacturer limited to the higher-income segment that is increasingly challenged to sell vehicles when interest rates are not zero. We continue to question the company’s long-term growth profile and governance.”
7. Salesforce Inc (NYSE:CRM)
Number of Hedge Fund Investors: 116
Salesforce Inc (NYSE:CRM) is among the key enterprise software vendors that are poised to benefit in 2025, according to a survey of chief information officers by KeyBanc, which shows that IT budgets are expected to rise in the coming year.
The survey found that IT budgets are anticipated to grow by 3.9% year over year in 2025. Among the large companies surveyed, 71% of respondents expect increases in their IT budgets, while 82% of small businesses surveyed also anticipate growth.
“Following our second half 2024 survey, we are incrementally more optimistic compared to our midyear report six months ago,” said KeyBanc analyst Jackson Ader in a detailed report. “We are seeing positive signs of a potential rebound within front office applications in 2025 with increasing budget priorities.”
“Specific vendor callouts include CRM’s rising priority and MSFT remaining a leading cloud vendor and beneficiary of generative AI, a category where expectations for spending were up this survey,” he added.
Polen Focus Growth Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q3 2024 investor letter:
“In the third quarter, we purchased new positions in Apple and Oracle and eliminated our small positions in Nike and Salesforce, Inc. (NYSE:CRM). We exited our position in Salesforce to fund better opportunities in Shopify and MSCI. Salesforce is seeing slower revenue growth than we would have expected, given the weakening macroeconomic environment. Furthermore, since its core end markets in customer relationship management (“CRM”) and Service are fairly mature, a lower growth level versus our expectations could persist for some time.”
6. Apple Inc (NASDAQ:AAPL)
Number of Hedge Fund Investors: 158
Barton Crockett from Rosenblatt explained on CNBC why he believes Apple Inc (NASDA:AAPL) could be a long-term play but not a stock to own just for this holiday season:
“We do believe that Apple is not really a holiday play. We do think that the iPhone growth will be accelerated as they roll out more broadly and more impactfully with their AI features, but that’s a next year story. This year, it’s gratifying that their demand has been as stable as it has, given the changes and their slow start in AI. But we can look forward to better days ahead. We do believe that the stock has anticipated that, and we think that makes Apple a stock you want to own here—not for holiday sales, really, but for next year.”
Morgan Stanley recently called Apple’s current position “challenging,” with KeyBanc and TF International Securities expressing concerns over iPhone sales volume. KeyBanc downgraded Apple to “underweight” with a $200 price target. Almost every bullish case on Apple Inc (NASDAQ:AAPL) was built around this assumption: millions of people would rush to upgrade their iPhone because of AI features. But the latest numbers for iPhone 16 do not show much enthusiasm for the new device.
Apple Inc (NASDAQ:AAPL) has been seeing a long-term decline in mobile carrier upgrade rates, especially postpaid, for several years. This suggests that people are holding onto their devices longer, likely due to economic factors, satisfaction with current technology, or a lack of exciting new features in recent models
In the latest earnings call, Apple Inc (NASDAQ:AAPL) CEO Tim Cook highlighted new features for the iPhone, such as a more comfortable watch band and sleep apnea detection, but none appeared to be major demand drivers for new customers.
Mar Vista Strategic Growth Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q3 2024 investor letter:
“Apple Inc. (NASDAQ:AAPL) stock was strong in the quarter as investors viewed the company’s generative AI roadmap and iPhone 16 product cycle positively. The market was reminded of the strength of the Apple ecosystem as management demonstrated how generative AI solutions would be integrated into its iOS 18 operating system, which was broadly released in the iPhone 16 late in calendar Q3. We believe Apple’s generative AI-enabled products should spur a meaningful iPhone upgrade cycle and create new avenues of monetization through its app store and advertising offerings. We believe this will support intrinsic value growth that will range between high single digits and low double-digits over our investment horizon.”
5. Alphabet Inc (NASDAQ:GOOG)
Number of Hedge Fund Investors: 160
Josh Brown, CEO of Ritholtz Wealth Management, explained during a program on CNBC why he is cutting his stake in Alphabet Inc (NASDAQ:GOOG):
“The problem here is not that they’re going to fail with AI—I think they’ll do fine. The problem here is that they have more competition in AI than they’ve ever had in their core business, and it’s unclear how they’ll be able to hit that same level of profitability with that competition in AI as opposed to what they’ve been able to historically do with search. I gave this company the benefit of the doubt for a long time. Price action is telling me there’s just more doubt out there than there is enthusiasm. I did not like the way it gave up that entire post-earnings. So for me, I just want to be smaller there, and there are other setups that I like better.”
What are the key drivers for Alphabet (NASDAQ:GOOGL)?
Alphabet Inc (NASDAQ:GOOGL) remains on track to reach a $100 billion revenue run rate from YouTube Ads and Google Cloud by the end of 2024. In its autonomous driving division, Waymo has shown notable progress, with paid autonomous rides growing 200% quarter-over-quarter to 150,000 weekly rides as of late October, thanks to a fleet of 700 vehicles in service since August.
This growth is significant: Waymo vehicles now average about 30.6 autonomous rides per day—substantially higher than Uber’s average of 4.18 rides per driver daily, based on Uber’s 31 million daily trips and 7.4 million drivers last quarter. This performance underscores Waymo’s competitive edge in autonomous ride volume compared to traditional ride-hailing.
In the third quarter, Alphabet Inc (NASDAQ:GOOGL)’s Search & Other segment saw a 12.2% year-over-year revenue increase, rising from $44.03 billion to $49.39 billion. YouTube advertising also performed well, with revenue up 12.2% to $8.92 billion from $7.95 billion. Meanwhile, Alphabet Inc (NASDAQ:GOOGL)’s subscriptions, platforms, and devices revenue grew even more sharply, surging 27.8% from $8.34 billion to $10.66 billion.
Google Cloud has been expanding steadily, with revenue climbing from $13.06 billion in 2020 to $33.09 billion in 2023. Notably, Google Cloud turned profitable for the first time in 2023, posting $1.72 billion in operating profit—a significant improvement from a $5.61 billion loss in 2020. This segment’s performance continues to strengthen, with the latest quarterly revenue reaching $11.35 billion, up 35% from $8.41 billion in the same period last year.
Conventum – Alluvium Global Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q3 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG), ie Google/YouTube, having returned 20.8% in the June quarter, gave a fair bit of that back by falling 8.8%. Its results seemed pretty positive, and appeared to beat expectations. Management claims its AI integration into its search business is working well, and the margin expansion from costs out is expected to continue. Market chatter suggests that the selloff stems from concerns about the high capital spending on servers and data center equipment. Alphabet has made it clear that this spending is necessary, and somewhat defensive as it can’t risk losing the AI war (a “build it, and they will come” approach). Also, the new Department of Justice case against it probably did not help matters. Nonetheless, we saw no need to adjust our estimates. We wrote last quarter that it traded at a premium to our valuation, but not so much as to warrant selling. With the share price falling and the premium reducing, our view is unchanged. It represents 4.4% of the Fund.”
4. Nvidia Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 193
Commenting on Nvidia Corp (NASDAQ:NVDA) results last month, Dan Niles, Niles Investment Management founder and portfolio manager, said that when Nvidia said in its call that the demand would surpass supplies for the next “several quarters,” it set the bar lower for those who “believe the dreams.”
“They just reset the bar lower. Things are going to accelerate as you go into next year, and so, depending, you’re in a really great seasonal time of year for stocks. People just want to believe in the Santa Claus rally.”
Niles then made his case for the expected slowdown and reality check for Nvidia Corp (NASDAQ:NVDA) in the future:
“You’re going to, at some point next year, run into an issue where you’ll need to see a return on investment for the money you’re putting in. Think about Microsoft—they cut estimates after the June quarter report and again after the September quarter report. At their Ignite conference, they even mentioned hitting a wall, potentially with scaling loss.
At some point, there will likely be a pause to digest this. Nvidia revenues, however, could still double over the next several years as there’s a long way to go in building out AI infrastructure. I’m just saying, you’ve got to be honest.”
Simply beating earnings estimates is not enough for NVIDIA Corporation (NASDAQ:NVDA) anymore. The stock fell despite reporting better-than-expected numbers for the latest quarter. However, analysts are sensing a growth slowdown. Nvidia’s Q4 revenue guidance missed the buy-side whisper number of $39 billion, and the company expects gross margins to keep shrinking next quarter. For Q4, non-GAAP gross margin is projected at 73.5%, down from 75% in Q3. NVIDIA Corporation’s (NASDAQ:NVDA) biggest customers, cloud hyperscalers — which account for 50% of its revenue — are increasingly developing in-house AI chips and collaborating with competitors like AMD. This raises concerns about Nvidia’s medium-to-long-term growth in demand and margins.
Columbia Seligman Global Technology Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 investor letter:
“The fund held an underweight position in NVIDIA Corporation (NASDAQ:NVDA) relative to the S&P North American Technology Sector, which was a headwind on performance following impressive returns from the company in 2023 and the first two quarters of 2024. NVIDIA’s stock fell during periods of the quarter after the company reported second quarter earnings. While the earnings came in higher than expectations, investors were concerned that the company did not guide earnings high enough, signaling a potential slowdown in AI buildout. NVIDIA’s demand remains strong and the company has forecast orders for upcoming quarters. The question that remains is whether the company can meet the demand for its AI processors and connectivity chips. Our team continues to remain cautious on NVIDIA’s high customer concentration. Microsoft and Meta have driven a significant amount of the company’s revenue, which presents added risk.”
3. Meta Platforms Inc (NASDAQ:META)
Number of Hedge Fund Investors: 235
Kevin Simpson, Capital Wealth Planning founder and CIO, explained on CNBC in a recent program he he is buying more Meta Platforms Inc (NASDAQ:META) shares:
“This is a stock that we don’t think is overvalued by any means. You look at the forward PE of 25, and you think any type of double-digit earnings next year are going to be accretive to the bottom line. They are so focused on shareholder value. The initiation of the dividend, Scott made this a really unique trade for us yesterday because not only did we add it to our new growth strategy in the QVO, but we also bought it in our flagship dividend strategy. They’re buying back shares, $41 billion committed to shareholder buybacks; they reduced the float by 10% over the past three years. This is the first time—and who knows how long it will be again—where we’re buying a stock both in a growth strategy and a dividend strategy. But I think it speaks a lot to Meta, how they check off so many boxes. The advertisers now have broached over 10 million, the daily users, the monthly users are increasing year-over-year by 7%. And we also look at this as a true hardware play—the the glasses, the Meta Quest, the ray bands, and the new Orion someday down the road are legitimate products that are actually competing with Apple products. We’re really excited about this stock not as a trade but as a true company that’s continuing to grow over the next 3 to 5 years.”
Meta Platforms (NASDAQ:META) is driving usage and ads revenue by improving its algorithms and user experience thanks to AI. Meta also reported strong adoption of its Llama AI model, attracting over 500 million monthly active users across its platforms. This progress positions Meta well for robust profitability in the next two years as it scales its AI infrastructure.
Meta Platforms (NASDAQ:META)’s advancements in Reels and WhatsApp are helping manage CapEx growth as the company strives to stay competitive in AI.
Meta Platforms (NASDAQ:META)’s clear monetization strategy for its generative AI, especially with Llama3, makes it a strong contender against rivals like OpenAI’s ChatGPT. Meta Platforms (NASDAQ:META)’s substantial user base of 3.3 billion provides a data and distribution edge that could capture a significant share of the GenAI market. Although short-term investors may be concerned about Meta Platforms (NASDAQ:META)’s increased AI spending, its forward P/E ratio of 24x, based on FY 2025 EPS estimates of $24.62, makes it the second-most affordable big tech stock, after Google, within its peer group (Apple, Amazon, Microsoft, and Google).
According to some estimates, Meta Platforms (NASDAQ:META) is on track to potentially achieve $25-26 per share in EPS next year, slightly above the consensus estimate. Factors such as a strong U.S. economy, lower inflation, favorable online ad pricing, and AI investments could fuel earnings growth. If Meta’s valuation aligns with the industry average P/E of 26.6x, shares could reach over $600.
Alger Spectra Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q3 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META) operates the world’s largest social network, with over 3 billion monthly active users. The company generates more than 95% of its revenue from advertising, evenly split between North America and international markets. During the quarter, shares contributed to performance following the release of strong fiscal second quarter operating results, with revenues and earnings beating analyst estimates. Management also raised their fiscal 2024 revenue guidance, citing improved advertising monetization. CEO Mark Zuckerberg stated that AI has played a key role in these successes, as the company is leveraging AI to enhance targeting, measurement, ranking, and ad delivery. Higher user engagement, driven by video ranking, content recommendations, and single video views, has also supported growth. Additionally, the optimization of ad placements within videos and automation of ad campaigns are further boosting monetization.”
2. Microsoft Corp (NASDAQ:MSFT)
Number of Hedge Fund Investors: 279
Microsoft Corp (NASDAQ:MSFT)is among the key enterprise software vendors that are poised to benefit in 2025, according to a survey of chief information officers by KeyBanc, which shows that IT budgets are expected to rise in the coming year.
The survey found that IT budgets are anticipated to grow by 3.9% year over year in 2025. Among the large companies surveyed, 71% of respondents expect increases in their IT budgets, while 82% of small businesses surveyed also anticipate growth.
“Following our second half 2024 survey, we are incrementally more optimistic compared to our midyear report six months ago,” said KeyBanc analyst Jackson Ader in a detailed report. “We are seeing positive signs of a potential rebound within front office applications in 2025 with increasing budget priorities.”
“Specific vendor callouts include CRM’s rising priority and MSFT remaining a leading cloud vendor and beneficiary of generative AI, a category where expectations for spending were up this survey,” he added.
Analysts believe most of the revenue beat came from PC segment, while investors were paying more attention to AI and Azure. Azure’s 34% growth met expectations, though guidance for next quarter fell short, projecting between 31% and 32% growth—1 percentage point below forecasts. This dip is attributed to delays in data center capacity from third-party providers, though Azure’s consumption trends remained steady.
Investors hoping for a rebound in IT spending were likely disappointed, as stable Azure consumption suggests no significant uptick in the second half of the year. In addition, the lower-than-expected Q2 guidance underscored tempered growth expectations.
AI services, however, contributed a robust 12 points to Azure’s growth, a steady continuation from the previous quarter. Microsoft’s management confirmed strong demand for AI services, although supply constraints are limiting further expansion. Microsoft Corp (NASDAQ:MSFT) anticipates AI-related revenues, including M365 Copilot and Azure AI, could reach $10 billion annually by next quarter—making it one of the fastest-growing segments in Microsoft Corp (NASDAQ:MSFT)’s history.
Mar Vista Strategic Growth Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q3 2024 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) stock was pressured in the quarter as investors fretted over rising capex as Microsoft invests heavily in the burgeoning generative AI market. Investors are concerned about the rising capital intensity of the business and the uncertain return on that investment. We continue to believe that Microsoft occupies a strong competitive and strategic position and that it is poised to capture market share as businesses, both large and small, navigate the transition to a digital-first landscape and embrace generative AI-driven productivity tools. The company’s commanding presence in the enterprise arena, combined with its comprehensive product portfolio encompassing Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS), establishes it as a crucial provider of IT solutions for companies of all scales. Microsoft is effectively executing its strategy in a sizable market by offering a roadmap for digital transformation and adoption of cutting-edge, AI-driven solutions, such as ChatGPT and its suite of Copilot applications, which enhance productivity and reduce costs. Consequently, we anticipate that Microsoft’s solutions should exhibit resilience even in a more challenging macroeconomic environment, supporting low double-digit growth in intrinsic value within our investment horizon.”
1. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Investors: 286
Barton Crockett from Rosenblatt, who has a Buy rating on Amazon.com Inc (NASDAQ:AMZN), recently talked to CNBC about the company and explained his concerns and outlook on the company’s cloud business.
“I do think that AWS hasn’t really been accelerated by AI yet, but that could happen—probably will happen. They have been losing share in AI, I think, to Azure and Google, but I think that can improve as they enhance their capabilities. The biggest kind of support for Amazon right now has been this tremendous margin story. It’s almost like whatever happens on the top line, the margins have been so strong that it’s an incredibly powerful, compelling element to that story, and that almost outweighs the rest of it.”
Amazon.com Inc (NASDAQ:AMZN) threw it out of the park with its latest quarterly results amid strong Cloud growth. Amazon Web Services has generated $27.5 billion in revenue, marking a 19% year-over-year increase. The segment’s operating income is expanding at nearly 2.5 times the rate of its revenue growth, boosting Amazon.com Inc (NASDAQ:AMZN)’s overall operating income. At this pace, AWS is on track to deliver $110 billion in annualized revenue. If it maintains its ~20% growth rate, AWS could reach $125-130 billion in revenue in FY 2025.
For the ongoing quarter, Amazon.com Inc (NASDAQ:AMZN) expects revenue between $181.5 billion and $188.5 billion, implying growth of up to 11%. Amazon.com Inc (NASDAQ:AMZN)’s stock currently trades at a forward P/E of 32.9, higher than the big tech average of 25.5. If Amazon.com Inc (NASDAQ:AMZN) grows its earnings per share (EPS) by an average of 25% annually over the next three years, it could achieve an EPS of around $9.25 by FY 2027 (up from an estimated $4.74 in FY 2024). Applying a 35x P/E ratio in line with Amazon.com Inc’s (NASDAQ:AMZN) historical average suggests a fair stock value of over $300. The primary catalyst for this target would be AWS’s robust operating income growth.
Parnassus Core Equity Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2024 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) ended the quarter slightly down, so our underweight position contributed to relative return. We added the stock after the share price declined significantly, and the timing of the purchase proved beneficial: after we initiated the position, shares rebounded strongly as sentiment around the consumer improved.”
While we acknowledge the potential of Amazon.com (NASDAQ:AMZN), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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.
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