Top 10 AI Stocks on Wall Street’s Radar Right Now

Page 9 of 9

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

Number of Hedge Fund Holders: 338

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 February 20, JPMorgan reiterated Amazon as its “Best Idea”, stating that it is sticking with the stock despite survey checks that showed e-commerce demand is decreasing for the company.

“We estimate AMZN’s share of US e-commerce decreased -58bps Y/Y to 46.1% in 4Q, though we believe Amazon remains well- positioned as the leader in e-commerce, benefitting from its fast delivery speeds, expansive selection, & competitive pricing.”

Even though Amazon has given lower-than-expected sales guidance with its fourth-quarter results, investors are still particularly optimistic about the company’s expansive e-commerce and cloud-computing operations. Chief Executive Andy Jassy said AI represents “the biggest technology shift and opportunity in business since the internet”. The company plans to spend $100 billion on capital expenditures this year, featuring notable investments in artificial intelligence and spending on its stores business. The company’s warehouses run on nearly full autonomy with robotic technology, improving delivery speed and efficiency.

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 timeframe. 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: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

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.

Page 9 of 9