10 Important AI News on Investor Radars

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

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) uses AI to enhance its shopping experience, entertainment services, and operational efficiency, while also investing in AI through initiatives like Anthropic, AWS partnerships, and Tranium to strengthen its position in AI development.

On January 22, Cantor Fitzgerald analyst Deepak Mathivanan reiterated an Overweight rating on Amazon, maintaining it as a top pick with a price target of $270. Mathivanan highlighted the potential upside for Amazon in both the fourth quarter of 2024 and the first quarter of 2025, driven by accelerated AWS growth and retail margin expansion. He noted that AWS is set to benefit from increased AI workloads, while retail margins should improve due to fixed cost leverage. Despite challenges from the Kuiper launch, the outlook for 2025 remains positive.

While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that 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.

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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