13 AI News That Broke the Internet

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

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) provides a wide range of services, including cloud computing, machine learning, and data analytics, driving innovation across e-commerce, media, and advertising. The company is heavily investing in AI and also leverages it to enhance product offerings, optimize operations, and improve customer experiences.

TD Cowen has increased Amazon’s price target from $240 to $265 while maintaining a Buy rating. The firm identifies three main growth factors for 2025: improved operating margins supported by AWS and Advertising, cost efficiencies in eCommerce, and faster AWS revenue growth. Additionally, rising net cash is expected to offer flexibility in capital allocation.

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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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