Tariff Hits and More: 10 AI Stocks in the Spotlight

1.  Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 339

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 April 4, Eric Sheridan from Goldman Sachs maintained a “Buy” rating on the stock with a price target of $255.00. Sheridan believes that Amazon could see a potential $5 billion to $10 billion annualized operating profit hit from higher first-party merchandise costs due to Trump tariffs.

“We believe that Amazon investors are (and will remain) focused on the potential financial impact of the reciprocal tariffs announced by President Trump on April 2.”

Regardless of the tariffs, Sheridan believes that several strategies can help the company mitigate the effects of the tariffs.

“These potential offsets include negotiating with vendors to avoid having to bear 100% of the higher input costs, increasing prices on certain items for customers, and mix shifts in the vendor base and products sold on the platform towards items that face lower tariffs (or US domestic alternatives).”

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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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