10 Stocks That Will Benefit From AI

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

Number of Hedge Fund Holders In Q3 2024: 286

Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest eCommerce firm. It also enjoys a strong presence in the cloud computing industry through its AWS business division. Combined, the eCommerce and cloud businesses enable Amazon.com, Inc. (NASDAQ:AMZN) to simultaneously operate in high volume and high margin industries. They also provide it with wide exposure to AI, through which Amazon.com, Inc. (NASDAQ:AMZN) is both an AI enabler and a beneficiary. The firm ‘enables’ AI through its multi-billion dollar investment in Anthropic which has provided it with access to the Claude foundational AI. It is an AI beneficiary as its eCommerce business allows it to use AI to improve the experience for merchants and AWS enables it to sell AI products to other businesses. Amazon.com, Inc. (NASDAQ:AMZN) is also one of the few firms with the full AI stack, from its custom processors to services such as Amazon Bedrock for AI application development.

Polen Capital mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2024 investor letter. Here is what the fund said:

“The largest absolute detractors were Alphabet, Airbnb, and Amazon.com, Inc. (NASDAQ:AMZN). Amazon’s position as a notable detractor speaks more to the size of the position than the magnitude of the underperformance, as the company delivered a solid set of results during the quarter.

We trimmed our positions in Amazon, Alphabet, and Microsoft during the quarter. As we have previously, we trimmed Amazon slightly to bring the weight back to 15% for risk management purposes. We remain very positive on our investment thesis of strong revenue growth and even stronger earnings and free cash flow growth continuing over the next few years.”

AMZN is a stock poised to benefit from AI. While we acknowledge the potential of 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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