The Future of Artificial Intelligence: 5 Companies, 5 Predictions

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

Number of Hedge Fund Holders: 252    

Related Prediction: Transformative AI Systems Will Become Affordable by the Year 2050

Amazon.com, Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products and subscriptions in North America and internationally. One of the first AI products from the firm was Kiva, automated guided vehicles (AGVs) that could navigate a warehouse using a series of computerized barcode stickers on the floor. Now, a decade later, Amazon has announced the first fully autonomous mobile robot (AMR), Proteus. Ajeya Cotra, who works for the nonprofit Open Philanthropy, has predicted that transformative AI systems, such as the one used by the robot, will become affordable by the year 2050. 

On December 19, Evercore ISI analyst Mark Mahaney maintained an Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) stock and lowered the price target to $150 from $170, highlighting that the dislocated, high quality stock was very appealing for long-term investors.    

At the end of the second quarter of 2022, 252 hedge funds in the database of Insider Monkey held stakes worth $30 billion in Amazon.com, Inc. (NASDAQ:AMZN), compared to 271 in the preceding quarter worth $48 billion.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer and cloud services, provider. Shares of Amazon declined 35% in the quarter due to weaker-than-expected profits resulting from the overcapacity of resources coming out of COVID. We expect Amazon to grow its retail capacity in the coming quarters, enabling it to improve profitability accordingly. Amazon remains one of our largest holdings due to its durable competitive advantages with a leading position in multiple trillion-dollar markets with a long runway for growth (…read more)