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Amazon.com (AMZN) – AWS & AI-Driven Boom: Is $285 Just the Beginning?

We recently published a list of 10 AI Stocks Analysts Are Watching: Latest Ratings and News. In this article, we are going to take a look at where Amazon.com Inc (NASDAQ:AMZN) stands against other AI stocks analysts are watching.

A consortium of investors led by Elon Musk recently offered $97.4 billion to buy the non-profit that controls OpenAI. Musk’s lawyer, Marc Toberoff, confirmed the news. He told Reuters that the offer was sent by email on Monday to OpenAI’s outside counsel at Wachtell, Lipton, Rosen & Katz. However, OpenAI has said that it has not yet received a formal bid from the Elon Musk-led consortium.

READ NOW: 10 AI Stocks Trending on News and Analyst Ratings and 12 High-Flying AI Stocks This Week

According to Toberoff, the bid was in the form of a “detailed four-page Letter of Intent” to purchase OpenAI’s assets. It was signed by Musk and other investors and addressed to the board. Nevertheless, the news of not having received the bid adds confusion over Musk’s attempt to take control of the artificial startup that has seemingly started the AI arms race.

“Whether Sam Altman chose to provide or withhold this from OpenAI’s other Board members is outside of our control”

-Toberoff, referring to OpenAI’s CEO.

Whether or not an official bid has been sent to OpenAI from Musk, one thing remains clear. Sam Altman, CEO of OpenAI, is not interested in the offer. Altman told Reuters that the non-profit that controls OpenAI is not for sale. He also posted on X, counter-questioning if Musk wanted to sell Twitter for $9.74 billion instead.

“I have nothing to say. I mean, it’s ridiculous. The company is not for sale. It’s another one of his tactics to try to mess with us”.

-Altman said (on the sidelines) of an AI summit in Paris when asked about the offer.

Reuters also reported that Altman sent an internal message to OpenAI employees stating that the board, even though it had not officially reviewed the offer, would reject it based on the interest of OpenAI.

OpenAI is currently seeking a transition into a for-profit from a nonprofit entity. The company states that the transition is required to secure the capital needed for developing the best AI models. Musk, however, appears to have made the move to prevent this outcome. According to him, OpenAI’s transition to a for-profit entity would steer it away from its original mission of developing open-source, safety-focused AI that benefits humanity.

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.

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).

A customer entering an internet retail store, illustrating the convenience of online shopping.

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 12, Loop Capital raised the firm’s price target on the stock to $285 from $275 and kept a “Buy” rating on the shares.

The rating follows Amazon’s Q4 beat last week, reflecting upon the firm’s confidence that Amazon’s bullish thesis is playing out and demonstrates a meaningful upside ahead. The firm noted that it is not the only one having a bullish outlook on AWS. Analysts also told investors in a research note that accelerated cloud migration and gen AI-driven use cases is a massive, multi-year growth cycle that is anticipated to push the stock higher.

Overall, AMZN ranks 1st on our list of AI stocks analysts are watching. 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 Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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