Top 10 Buzzing AI Stocks to Watch Now

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

Number of Hedge Fund Investors: 338

Jim Cramer in a recent program on CNBC recommended investors to buy Amazon.com (NASDAQ:AMZN) shares on a pullback.

“Amazon is what I call money side up, and I think you ought to understand this about it. This thing can go down, and when it goes down, what do you do? You buy it. That’s what I’m going to tell club members. I regard this stock going down as a gift—you wouldn’t be able to get it otherwise. This thing is amazing, and it’s like people who order from Amazon are selling the stock. I mean, think about that. That makes no sense to me.”

Alger Spectra Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:

Amazon.com, Inc. (NASDAQ:AMZN) is a renowned online retailer and leader in cloud computing. The company’s Amazon Web Services (AWS) division offers utility-scale cloud solutions that support corporate America’s digital transition. During the quarter, Amazon’s shares contributed to performance as the company reported better-than-expected fiscal third-quarter results, with revenues and earnings beating analyst estimates. Operating margins expanded to 11%, driven by efficiency gains in logistics and robust AWS performance. Notably, AWS revenue growth accelerated during the quarter, along with recording its highest-ever operating margin of 38.1%, driven by easing cloud cost optimizations, renewed workload migrations, and an increasing contribution from AI workloads. On their earnings call, management highlighted plans to increase capital expenditures to enhance their technology infrastructure, catering to the surging demand for AI-driven computing.”

While we acknowledge the potential of Amazon.com Inc (NASDAQ:AMZN), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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 9 AI News and Ratings on Wall Street’s Radar and 10 AI News and Ratings You Should Not Miss.

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