We recently compiled a list of the 10 Trending AI News and Ratings You Must Take a Look At. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against the other AI stocks.
AI continues to evolve quite fast and it is influencing different sectors with its potential to transform business operations and improve efficiencies. As AI technology advances, there is a noticeable shift towards making its tools more accessible, especially for startups and smaller enterprises that can benefit from cost reductions in computing. While large businesses have already integrated AI into their operations with significant returns, the growing trend of AI adoption is driving a deeper focus on making the technology more affordable and scalable.
DeepSeek Innovation and Its Impact on AI Adoption
Umesh Sachdev, Co-Founder and CEO of Uniphore shared his thoughts on the recent DeepSeek innovation and its impact on AI adoption in an interview with CNBC. He believes DeepSeek has brought a positive shift in reducing computing costs, which makes it easier for startups and consumer AI to integrate these technologies. However, he noted that for large enterprises, especially in industries like banking and telecom, the cost reduction has less of an impact since they had already seen high returns on their AI investments and weren’t waiting for lower costs to drive adoption.
Sachdev also highlighted security concerns, especially regarding potential links to the Chinese government, which are a top issue for regulated American enterprises. Despite these concerns, he praised DeepSeek for open-sourcing its technology, making its claims about low-cost AI model development more credible.
He further compared the current AI infrastructure developments to the early days of the internet and noted that just as the internet’s growth was fueled by affordable mobile devices, AI adoption will similarly accelerate as the cost of computing continues to drop. Uniphore focuses on providing the application layer that enables enterprises to derive significant ROI from large AI models. CEOs are now looking to integrate AI across entire businesses by 2025, which marks a shift toward more widespread AI adoption.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 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) integrates AI into shopping, entertainment, and operations, driving innovation through investments, AWS partnerships, and Tranium.
On January 31, AWS added DeepSeek-R1 models to its AI services, making them available through Amazon Bedrock and Amazon SageMaker. DeepSeek, a Chinese AI company, recently introduced several models, including DeepSeek-R1 and its distilled versions, which range from 1.5 to 70 billion parameters. These models are known for their cost-effectiveness and strong reasoning capabilities.
Users can deploy DeepSeek-R1 models via Amazon Bedrock for API-based access, Amazon SageMaker for customization, or AWS Inferentia and Trainium for cost-efficient inference. Amazon Bedrock Guardrails can also be integrated for content moderation. The models are now accessible through multiple AWS services, providing flexible deployment options for various AI applications.
Overall AMZN ranks 1st on our list of the trending AI stocks in news and ratings investors must take a look at. While we acknowledge the potential of 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.
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Disclosure: None. This article is originally published at Insider Monkey.