Top 10 Stocks to Buy According to Think Investments

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

Number of Hedge Fund Holders as of Q4: 339

Think Investments’ Equity Stake: $71.36 Million 

As of Q4 2024, Think Investments held 325,275 shares of Amazon.com, Inc. (NASDAQ:AMZN), valued at over $71 million. Hedge fund interest in the company also increased, with 339 out of 1,009 funds tracked by Insider Monkey holding positions worth nearly $69.02 billion by the end of the quarter, up from 286 funds in Q3.

Amazon.com, Inc. (NASDAQ:AMZN)’s fourth-quarter 2024 earnings report reflected solid financial performance, with earnings per share (EPS) of $1.86 surpassing analyst expectations by 25.3% and revenue reaching $187.8 billion—a 10% year-over-year increase. However, the company’s Q1 2025 sales forecast of between $151 billion and $155.5 billion fell short of Wall Street’s expectation of $158.5 billion, dampening investor sentiment. Compounding this concern was a $2.1 billion foreign exchange headwind and Amazon’s announcement of an aggressive $100 billion capital expenditure plan for 2025, primarily earmarked for Amazon Web Services (AWS) and artificial intelligence. This figure is a notable increase from the $83 billion spent in 2024, raising concerns amid intensifying competition from rivals like Microsoft and Alphabet.

Despite these headwinds, Amazon.com, Inc. (NASDAQ:AMZN) continues to strengthen its position through strategic investments in AI. The company is integrating artificial intelligence across its core business segments, including e-commerce, advertising, and especially AWS, which stands out as its most profitable division. AWS is witnessing significant demand from customers for AI-driven workloads, positioning it to benefit considerably from ongoing advancements in AI technologies. The expanded capex for 2025 is largely directed toward bolstering AWS infrastructure to meet the rising demand for such services.

Analysts remain optimistic about Amazon’s long-term prospects, particularly its leadership in the cloud and AI sectors. Brian White of Monness reaffirmed a “Buy” rating on Amazon stock with a price target of $265, citing the company’s robust strategic positioning and growth potential.

Overall, AMZN ranks first among the top 10 stocks to buy according to Think Investments. While we acknowledge the potential of these top stocks, our conviction lies in the belief that 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.

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