9 Must-See AI News Updates That Are Trending on Wall Street

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

Number of Hedge Fund Holders: 286

Amazon.com Inc (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions. On February 6^th, Bank of America analysts weighed in on the stock before its fourth-quarter results on the same day after markets close. The firm deems Amazon as a “top pick”. It kept a $255 price target and a “Buy” rating on the shares. According to analysts, the tech giant is all likely to demonstrate strong results.

“We think Amazon had a solid 4Q with fulfilment/headcount leverage. 4Q Retail data was constructive for revenues, and for cloud, we think AWS can meet expectations for 19-20% growth on a growing AI contribution.”

-Bank of America’s Justin Post

“We think cloud demand likely remained robust in 4Q, and anticipate strong AI demand to continue into 2025 (potentially contributing 8pts to growth in ’25)”.

Post has highlighted several key growth drivers, which include Amazon’s expanding partnership with Anthropic, new competitive AI products such as the Nova models, reduced infrastructure costs driven by Trainium, and increasing GPU availability. Post said that AI scaling and AWS margins will also be scrutinized. Post is calling for Q1 revenue of $155.25 billion at the midpoint. Meanwhile, the Street’s forecast is $3.3 billion (2.1%).

While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some 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 Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.