We recently published a list of 10 AI Stocks Surging on News and Analyst Calls. In this article, we are going to take a look at where Amazon.com Inc. (NASDAQ:AMZN) stands against other AI stocks surging on news and analyst calls.
The interest in Chinese AI startup DeepSeek remains strong, and the company itself is actively fueling its momentum. In the latest news, the company has announced that it is going to make its models’ code publicly available. The move reaffirms its commitment to open-sourcing artificial intelligence.
Posting on social media platform X, the company said that its “tiny team” will open-source 5 code repositories next week. They describe the move as “small but sincere progress” and promise to share “with full transparency.”
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“These humble building blocks in our online service have been documented, deployed and battle-tested in production.”
-DeepSeek
Code repositories are storage locations where developers may see and contribute to software development. They are typically published in centralized hosting services like Microsoft’s GitHub. While they may contain key company assets, DeepSeek’s V3 and R1 models were open-source which implied anyone can see or modify them for free, leading to the rapid rise and success of the startup.
“As part of the open-source community, we believe that every line shared becomes collective momentum that accelerates the journey…Daily unlocks are coming soon…No ivory towers – just pure garage-energy and community-driven innovation.”
-DeepSeek
Unlike many US rival firms that tend to lean toward closed-sourced models, the company has been unique given its commitment to open-source. DeepSeek’s Liang Wenfeng said last July how the firm did not prioritize commercializing its AI models. He further noted that there was soft power to be gained from open source.
“Having others follow your innovation gives a great sense of accomplishment. In fact, open source is more of a cultural behavior than a commercial one, and contributing to it earns us respect”.
-Liang Wenfeng
With the new open-source code, DeepSeek will be providing the infrastructure to support the AI models that it has already publicly shared. Earlier, the company had also published a study with founder and CEO Liang Wenfeng one of the 15 co-authors. It discussed “native sparse attention”, which is designed to improve LLM efficiency in processing large data sets.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 338
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 16, TD Cowen analyst John Blackledge maintained their bullish stance on the stock, giving a “Buy” rating with a $265 price target. One of the reasons for Blackledge‘s buy rating is Amazon Web Services (AWS) expected growth in generative AI (GenAI) revenue. He noted that he expects growth to be approximately $2.8 billion in 2024 to $56.3 billion by 2030. This reflects a compound annual growth rate of 51% from 2025 to 2030.
Besides the revenue growth in GenAI, Blackledge also acknowledged Anthropic’s role in AWS’s GenAI revenue stream, with half of AWS’s GenAI revenue attributed to Anthropic in 2024. He further forecasted that based on differing scenarios, AWS’s GenAI revenue from Anthropic could reach between $7 billion and $17 billion by 2027. In addition, capital expenditure for AWS is anticipated to rise to approximately $76 billion in 2025. This is driven by the need to build out GenAI infrastructure to meet increasing AI demand.
Overall, AMZN ranks 1st on our list of AI stocks surging on news and analyst calls. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
