1. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Holders: 308
Amazon.com Inc (NASDAQ:AMZN) is a technology company that specializes in e-commerce, online retail, streaming, and data cloud services. Its e-commerce platform is functional in 20 countries and ships to over 100 countries. Its proprietary cloud service, Amazon Web Services, on the other hand, is used by millions of active customers and has over 130,000 AWS partners in 200 countries.
Amazon.com Inc (NASDAQ:AMZN) is also prominent on the AI front. Over the past few months, the company has partnered with AI startups like Anthropic and signed deals with the US government to test new AI models. As for AI hardware, the company has produced several AI chips to reduce its dependence on other companies. Amazon is efficiently branching out to multiple industries, which explains why it is widely held by hedge funds.
Speaking of AI, AWS is now housing the next generation of Llama models from Meta, giving customers more choices to build, deploy, and scale generative AI applications. The new models are capable of visual reasoning, document processing, and multilingual translation. On September 19, Amazon.com Inc (NASDAQ:AMZN) launched Project Amelia, a selling assistant backed by generative AI. Sellers will immensely benefit from the tool, allowing them to receive answers and advice immediately, for better customer assistance and reach.
Analysts are bullish on AMZN and their 12-month median price target of $220 points to an 18% upside from current levels. Overall, AMZN was held by 308 hedge funds and Fisher Asset Management was the largest shareholder, according to the Insider Monkey database.
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.”
Overall, AMZN ranks first among the 10 most widely held stocks by hedge funds. While we acknowledge the potential of cloud companies, our conviction lies in the belief that 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 NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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