Beyond the Tech Giants: 35 Non-Tech AI Opportunities

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

Number of Hedge Fund Holders: 308    

Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. Latest reports reveal that Amazon will power the latest updates to Alexa, the virtual assistant it has been marketing for years, with the AI model of Anthropic, a California-based AI startup. The reports indirectly reveal the failure of in-house AI models at Amazon, with some sources that spoke to news agency Reuters claiming that the in-house AI models of Amazon have lag times of six or seven seconds and problems with consistency and accuracy. The ecommerce giant will charge $5 or $10 per month for advanced AI features in Alexa.

Amazon.com, Inc. (NASDAQ:AMZN) is viewed with bullish sentiment on Wall Street. Cantor Fitzgerald recently initiated coverage of the stock with an Overweight rating and $230 price target, citing retail margin expansion and AWS acceleration. The advisory said it saw a runway in both, but added that the magnitude was likely to moderate compared to trends over the past two years and the path was unlikely to be linear.

While we acknowledge the potential of Amazon.com, Inc. (NASDAQ: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 Amazon.com, Inc. (NASDAQ:AMZN) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

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 13 High Growth Semiconductor Stocks That Are Profitable in 2024 and the 11 Best AI Penny Stocks to Invest in Now.

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