13 Best Forever Stocks to Buy Right Now

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

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) sells consumer items, advertising, and subscription services online and in physical shops in North America and overseas. The company also serves the cloud computing sector, particularly through its Amazon Web Services (AWS) division.

Amazon.com Inc. (NASDAQ:AMZN) stated on January 7 that AWS will invest around $11 billion to develop its infrastructure in Georgia. With this investment, AWS, a major income source for Amazon, is likely to improve its position as the market leader. In addition, Amazon.com Inc. (NASDAQ:AMZN) announced net revenues of $158.9 billion in fiscal Q3 2024, up 11% YoY due to AWS’s notable growth.

On February 10, New Street Research upgraded its outlook on Amazon.com (NASDAQ:AMZN) shares, with analyst Dan Salmon raising the price target to $280 from $234 and maintaining a Buy rating for the online retail giant. Salmon highlights AWS as a significant driver of Amazon’s future financial growth, with catalysts including expanded AWS partnerships, especially in artificial intelligence with Trainium 2. Other important advances include enhancements to the Nova frontier model, changes to consumer general AI apps such as Rufus, and the impact of general AI selling tools.

While we acknowledge the potential of AMZN, our conviction lies in the belief that certain 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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