10 Unrivaled Stocks of the Next 5 Years

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

Number of Hedge Fund Holders: 286

Amazon.com Inc. (NASDAQ:AMZN) is an American technology company that has a leading position in e-commerce and cloud computing through its Amazon Web Services (AWS) business. Amazon.com Inc. (NASDAQ:AMZN) ranks among the top unrivaled stocks to invest in according to hedge funds.

Fred Alger Management, an investment management company, discussed Amazon.com Inc. (NASDAQ:AMZN) in its “Alger Spectra Fund” fourth quarter 2024 investor letter. The letter noted that the company’s Amazon Web Services (AWS) division offers large-scale cloud solutions to help corporations with their digital transformation. During the quarter, AMZN’s stock performed well as the company reported better-than-expected Q3 2024 results, with revenues and earnings beating analyst estimates. Operating margins increased to 11%, supported by improved efficiency in logistics and strong performance from AWS. The investment management firm noted that AWS revenue growth accelerated during the quarter and achieved a record-high operating margin of 38.1%. This strong performance was driven by lower cloud cost optimizations, renewed workload migrations, and a rise in contributions from AI workloads.

The investor letter also pointed out that Amazon.com Inc.’s (NASDAQ:AMZN) management mentioned plans to increase capital expenditures to further enhance the company’s technology infrastructure to meet the growing demand for AI-driven computing.

Overall, AMZN ranks first among the 10 unrivaled stocks of the next 5 years. While we acknowledge the potential of these unrivaled stocks, our conviction lies in the belief that some 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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