Cathie Wood’s Top 12 AI Stock Picks in 2025

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

ARK Investment Management’s Stake Value: $196.37 Million

Number of Hedge Funds Holding Stakes: 338

Amazon.com, Inc. (NASDAQ:AMZN) is an internet-based business enterprise primarily providing e-commerce, cloud computing, digital streaming and artificial intelligence (AI) services. The company utilizes AI across its operations, from optimizing fulfilment centers and delivery routes to personalizing customer experiences.

It is one of Cathie Wood’s favorite stocks as it integrates artificial intelligence to enhance operations across its three segments: e-commerce, cloud computing, and digital advertising. Amazon.com, Inc. (NASDAQ:AMZN) has already built 1,000 different generative AI applications to improve operations in the three businesses. In e-commerce, it leverages AI to optimize demand and optimize inventory movement. It uses AI tools to create cost-efficient advertising content while designing custom chips to provide cheaper GPUs under its cloud computing unit.

The AI integration was the catalyst behind Amazon.com, Inc. (NASDAQ:AMZN), delivering an 11% increase in revenue in 2024 to $638 billion. Its operating margin expanded by 4% as GAAP net income increased 90% to $5.53 per diluted share, affirming why it is one of Cathie Wood’s favorite stocks. With sales up 19% to $28.8 billion in the fourth quarter of 2024 and operating income up 47% to $10.6 billion, AWS is Amazon’s fastest-growing sector. Amazon’s development of proprietary AI processors, application-specific integrated circuits, or ASICs, contributes to the segment’s strong operating margins.