Analysts Are Talking About These 10 AI Stocks

1. Amazon.com (NASDAQ:AMZN)

Number of Hedge Fund Investors: 338

Hightower’s Stephanie Link said in a latest program on CNBC that she would prefer buying Amazon.com (NASDAQ:AMZN) shares over Meta. Here is how she explained her reasons:

“I actually today would be buying Amazon over Meta because I do think that those results last week were quite good. Expectations were super high, but when you have U.S. retail, you got a lot of ways to win in Amazon. You can win on the retail side—they had 10% U.S. retail growth, margins were the best since 2004 in the U.S. retail piece. Margins also expanded internationally by about 400 basis points. And of course, AWS growing 19%. I know the guidance was lower, but that was really FX and a leap year, difficult compares. So to me, I think at about 14–15 times IA, when it trades at about 18 times historically, that’s the one I want to be putting more money into, and I will.”

Alger Spectra Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is a renowned online retailer and leader in cloud computing. The company’s Amazon Web Services (AWS) division offers utility-scale cloud solutions that support corporate America’s digital transition. During the quarter, Amazon’s shares contributed to performance as the company reported better-than-expected fiscal third-quarter results, with revenues and earnings beating analyst estimates. Operating margins expanded to 11%, driven by efficiency gains in logistics and robust AWS performance. Notably, AWS revenue growth accelerated during the quarter, along with recording its highest-ever operating margin of 38.1%, driven by easing cloud cost optimizations, renewed workload migrations, and an increasing contribution from AI workloads. On their earnings call, management highlighted plans to increase capital expenditures to enhance their technology infrastructure, catering to the surging demand for AI-driven computing.”

While we acknowledge the potential of Amazon.com Inc (NASDAQ:AMZN), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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. You can also look at the 9 AI News and Ratings on Wall Street’s Radar and 10 Stocks That Analysts Think Will Go Up.