In this article, we will take a detailed look at the Top 10 Trending AI Stocks Amid Latest News and Analyst Ratings.
The reality is finally catching up to the AI hype as investors await to see ROI on huge spending on AI chips and infrastructure. Dan Niles, Niles Investment Management founder and portfolio manager, during an interview with CNBC last month, called the decline in Mag. 7 stocks after Q2 earnings representative of a “fundamental shift” in the industry.
“I know it’s popular to talk about AI because these stocks are driving the market, but at a certain point, you want to get a return on all of this money you are investing. And if your forward revenue estimate is going lower not higher but your CapEx is going up, at some point those two things are going to collide.”
Niles said that major tech companies went through a “digestion” period after seeing huge returns during the COVID-19 pandemic days, and he expects the same to happen as we move into the next year.
The analyst said that on an equal-weighted basis, the broader market is up when compared with Mag. 7 stocks. He recommended investors to buy the stocks that would benefit from rate cuts. These include consumer staples, utilities, telecom services, etc.
Niles said the other 493 companies could drive the market to new “all-time record highs.”
For this article, we picked 10 AI trending stocks that are moving after latest analyst ratings and earnings. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. HP Inc (NYSE:HPQ)
Number of Hedge Fund Investors: 41
HP Inc (NYSE:HPQ) shares were under pressure amid the latest quarterly results in which the company issued a guidance cut. Wall Street analysts believe it would take time for HP Inc (NYSE:HPQ) to see a revival in PC demand amid the new AI wave.
Citi reaffirmed its Buy rating on the stock and a $37 price target saying AI PCs would revive growth in the coming fiscal years.
“We expect shares to trade modestly lower given the company lowered their FY24 EPS guide down modestly,” said Citi analyst Asiya Merchant.
What spooked investors in the latest quarterly results was the lackluster growth in PC revenue (about 4.9%) and a decline in the printing segment. The printing segment has never been the center of attention of HP Inc (NYSE:HPQ) investors. However, the latest data shows the growth in AI PCs everyone was banking on remains far into the future.
In the last couple of quarters, the company’s inventory levels have been climbing, reaching $7.5 billion as of the end of the last quarter.
HP Inc (NYSE:HPQ) Days of Inventory Outstanding (DIO) jumped to over 67 days, significantly above its five-year average of 55.96 days, nearing the highest level in recent years. With sales slowing, this spike in DIO suggests HP Inc (NYSE:HPQ) could face pressure on its stock price and uncertain returns in the next 1-2 years.
Amid all of this, the stock would be a risky bet who are just basing their hopes on the AI PC growth catalyst.
Greenlight Capital stated the following regarding HP Inc. (NYSE:HPQ) in its Q2 2024 investor letter:
“In addition to gold, we had four material winners in our long portfolio this quarter. HP Inc. (NYSE:HPQ) jumped from $30.22 to $35.02. After seven quarters of declines, PC sales turned marginally positive during the quarter. The industry appears to be in the early stages of an upcycle, perhaps to be enhanced by recently launched AI-enabled PCs that are expected to ramp up over the next several quarters.”
9. Marvell Technology Inc (NASDAQ:MRVL)
Number of Hedge Fund Investors: 74
Marvell Technology Inc (NASDAQ:MRVL) recently impressed Wall Street with its latest quarterly results.
Wall Street analysts are bullish on Marvell Technology Inc (NASDAQ:MRVL) because the company’s products are used in key products sold by major companies. Its 1.6T optical DSP is used in Nvidia’s (NVDA) Blackwell GPU platform while AI ASICS are used in Amazon’s (AMZN) Trainium 2 AI processor and Google’s (GOOG)(GOOGL) Axion CPU processor.
J.P. Morgan analyst Harlan Sur estimates that Marvell Technology Inc (NASDAQ:MRVL) will ship $575 million and $600 million in AI ASICs this year—well above their earlier estimate of $500 million. By year’s end, they expect Marvell Technology Inc (NASDAQ:MRVL) to hit a quarterly run rate of $300 million, compared to the previous target of $200 million.
In the second quarter, the company’s data center sales skyrocketed 92% year-over-year.
“Even more crucial, the company’s cyclical businesses are now on the upswing, with AI and cyclical tailwinds likely propelling a multi-quarter period of positive EPS revisions into CY25,” Sur noted.
Evercore ISI increased its price target for the stock to $98 from $91 following the results. The firm’s analysts Mark Lipacis and Natalia Winkler said Marvell Technology Inc (NASDAQ:MRVL) is riding two AI growth waves—custom ASICs and Electro-Optics—while its higher-margin Enterprise and Carrier businesses are rebounding from a two-year inventory slump.
Barclays also raised its price target to $85 from $80, maintaining an Overweight rating.
“We still like Marvell Technology Inc (NASDAQ:MRVL) story, with AI product ramps expected to drive further upside through next year, complementing core business growth fueled by accelerating fundamentals outside the data center,” analyst Tom O’Malley said.
O’Malley previously said that the potential Blackwell delays won’t affect the broader semiconductor supply chain and said Marvell is well-positioned to benefit from the launch of Blackwell and the increased demand for high-speed networking. He highlighted that Marvell’s custom ASIC business is expected to see growth, as key customers remain committed to accelerating orders. O’Malley also pointed to Credo’s (CRDO) recent earnings update, which he sees as confirmation that at least one major customer is moving forward with significant orders.
Artisan Mid Cap Fund stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its Q2 2024 investor letter:
“During the quarter, we initiated new GardenSM positions in CCC Intelligent Solutions, Marvell Technology, Inc. (NASDAQ:MRVL) and Insmed. Marvell Technology is a semiconductor company offering networking, secure data processing and storage solutions to customers worldwide. We believe Marvell has among the broadest range of intellectual property in technological areas (e.g., high-bandwidth data switching and storage applications) that position it well for the growing requirements of data centers, wireless networks and autos. Several of the company’s product lines (e.g., custom silicon, optical connectivity and switching) are benefiting from the growth of AI data centers. And we believe a significant opportunity exists for the company to help design and manufacture cost-effective custom data center chips that would help cloud providers reduce their reliance on expensive graphics processing units (GPUs). Furthermore, like many other semiconductor companies, a portion of its business may be poised for a cyclical recovery after the industry’s recent inventory correction.”
8. Intel Corp (NASDAQ:INTC)
Number of Hedge Fund Investors: 75
Intel Corp (NASDAQ:INTC) shares recently gained after a report said the company is working with advisers for strategic options to turn around the company.
Ed Snyder, Charter Equity Research co-founder and managing director, said while talking to CNBC that the current CEO of Intel, Pat Gelsinger, will have to go for the company to see a turnaround because after joining the company as CEO he just followed the “playbook” of the former management and continued to “run with it.”
“Intel is “incapable” of being a foundry… Intel’s culture is…. we are Intel we know what’s best.. Shutup and do what you are told.”
Ariel Global Fund stated the following regarding Intel Corporation (NASDAQ:INTC) in its Q2 2024 investor letter:
“Alternatively, several positions weighed on performance. One of the world’s largest semiconductor chip manufacturers by revenue, Intel Corporation (NASDAQ:INTC), underperformed in the period on news of a longer than expected turnaround in profitability within the Foundry business. This was exacerbated by disappointing near-term guidance due to a weakening demand environment signaling an extended replacement cycle. We view the quarter as a temporary trough that should dissipate as we see signs of a cyclical recovery for personal computers (PCs) and central processing units (CPUs), driven by the Windows 11 upgrade. In our view, the market is overlooking the progress Intel is making to advance its manufacturing process. Not to mention, the company’s efforts to serve as a viable second source foundry partner of leading-edge silicon. We believe the separation of the design and manufacturing businesses will be a key catalyst in unlocking improved financial performance while also enhancing the competitiveness of the foundry business.”
7. Tesla Inc (NASDAQ: TSLA)
Number of Hedge Fund Investors: 85
Tesla is in the limelight as its robotaxi event inches near.
William Blair recently started covering TSLA shares with an Outperform rating.
The firm’s bullish stance is based on the belief that Tesla’s energy storage business is underappreciated by the market.
Analyst Jed Dorsheimer said Tesla Energy as a key part of the company’s future, noting that investor focus is likely to shift from electric vehicles to energy storage in light of tempered EV expectations. He pointed to grid stabilization, data center expansion, and renewable energy integration as major growth drivers for Tesla’s energy storage segment.
Dorsheimer also called Tesla a technology leader, comparing its future potential to Apple’s ecosystem, with opportunities in AI, robotaxis, and robotics adding to its growth prospects.
Tesla trades at 29 times William Blair’s 2026 EBITDA estimate and 49 times its 2026 EPS estimate. While these high multiples are hard to justify, the firm believes that Tesla’s strong leadership under Elon Musk, along with its culture of innovation and technological edge, supports the stock’s premium valuation.
During the second quarter, Tesla Inc (NASDAQ:TSLA) automotive gross margin fell to 18.47% from 19.22% the previous year. Non-automotive revenue, now 22% of total sales compared to 14.67% in Q2 2023, has a lower gross margin, negatively impacting overall profitability. Tesla Inc (NASDAQ:TSLA) is still heavily reliant on EVs where demand is falling. Tesla energy business is not strong enough to offset declines in the core business.
Cathie Wood recently set a $2600 price target on Tesla Inc (NASDAQ:TSLA) for 2029, which presents a whopping 1300% upside potential from the current levels. Wood thinks the robo taxi project has the potential to deliver $8 to $10 trillion in revenue by 2030.
However, many believe Tesla Inc (NASDAQ:TSLA) won’t be able to live up to the hype around its robo taxi plans. Each robo taxi is expected to have a price target of around $150K to $200K, with some estimates suggesting Tesla Inc (NASDAQ:TSLA) would need about $35 billion to develop a global fleet of such cars. Amid inflation and lack of preference for electric cars, American families will probably stay away from spending a fortune on robo taxis, which could cause a blow to Tesla Inc’s (NASDAQ:TSLA) plans in the future.
Baron Partners Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q2 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) manufactures electric vehicles, related software and components, and solar and energy storage products. The stock contributed as Tesla continued to drive vehicle manufacturing costs lower, accelerate the launch of new models, and invest heavily in its lucrative AI initiatives. Shareholders reaffirmed the CEO’s compensation plan, alleviating personnel and legal uncertainties. Despite material operational complexities resulting in significant shutdowns of key manufacturing facilities and lower sales volume, Tesla presented better-than-expected margins in the quarter. It expects to launch a lower cost model as soon as late 2024, which should result in accelerated revenue growth, reduced manufacturing costs, and increased factory utilization. The company continued to advance its autonomous driving capabilities, expanding its already significant data centers and developing its humanoid robot Optimus. These investments increased confidence in the attractive growth opportunities that remain ahead.”
6. Dell Technologies Inc (NYSE:DELL)
Number of Hedge Fund Investors: 88
Dell Technologies Inc (NYSE:DELL) recently posted second-quarter results which impressed Wall Street.
Bill Baruch, founder and president at Blue Line Capital, said in an interview with CNBC that there were margin concerns in the previous quarter report but in the latest results we saw “significant” margin improvement in the infrastructure solutions group which holds the AI server subsegment. This subsegment saw about 80% year-over-year growth.
“This was a great report. It’s everything we wanted to see.”
The analyst said that the stock could reach $134 by the end of this year.
Dell Technologies Inc (NYSE:DELL) got attention when Elon Musk said on Twitter that the company, along with Super Micro Computer, would make servers for his AI startup xAI. But Dell is expanding its partnerships with other companies, too. In just a few quarters, AI servers have surged to account for 12.4% of total revenue, up from 2.2% three quarters ago. Dell Technologies Inc (NYSE:DELL) closed the quarter with a record $3.8 billion backlog, which is impressive. In May 2024, Dell expanded their AI factory with Nvidia to include the new PowerEdge XE9680L server, as well as storage, edge, and workstation solutions.
Carillon Scout Mid Cap Fund stated the following regarding Dell Technologies Inc. (NYSE:DELL) in its first quarter 2024 investor letter:
“Dell Technologies Inc. (NYSE:DELL) reported results that exceeded earnings expectations and announced a better than expected AI-optimized server order pipeline. We expect Dell to participate in the growth of artificial intelligence hardware in its server, storage and personal computing franchises. Long-term, we like the company’s depth and breadth of products and services, as well as its focus on keeping costs low.”
5. Alphabet Inc Class C (NASDAQ:GOOG)
Number of Hedge Fund Investors: 165
Dan Niles, Niles Investment Management founder and portfolio manager, said the following about GOOG while talking to CNBC:
“I don’t see how they keep 90% + share in search when you’ve got all of this spending on AI going and you’ve got to believe some of those companies take share.”
Alphabet Inc Class C (NASDAQ:GOOG) shares slipped recently following reports that OpenAI is working on a web search product called SearchGPT. Before that, the stock fell following earnings despite posting strong numbers. Revenue in the second quarter jumped 14% year over year driven by search and Cloud. At a forward P/E of 22, analysts believe Alphabet Inc Class C (NASDAQ:GOOG) continues to be one of the cheapest AI stocks in the market as its valuation remains depressed amid fears caused by an overreaction.
Despite constant alarms going off about its search business, Alphabet Inc Class C (NASDAQ:GOOG) search revenue jumped about 13.7% in the second quarter year over year. As of the end of June, Google has about 91.06% share of the search engine market, just 1.65% lower than the December 2019 levels. With AI overviews and other search initiatives, Alphabet Inc Class C (NASDAQ:GOOG) will be able to stave off any competitors given its dominance in the market.
Cloud and YouTube are two key strong catalysts for Alphabet Inc Class C (NASDAQ:GOOG) shares. During the second quarter, Alphabet’s Cloud revenue rose 28.8% to $10.35 billion, crushing past analysts’ forecasts of $10.16 billion. Alphabet Inc Class C (NASDAQ:GOOG) is on the path to reach a $100 billion revenue run-rate from YouTube Ads and Google Cloud by the end of 2024.
Baron Fifth Avenue Growth Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter:
“We also added to Alphabet Inc. (NASDAQ:GOOG). The company reported solid financial results with first quarter revenue growth of 15% year-over-year, driven by 14% growth in search, 21% growth in YouTube, and 28% growth in cloud (which accelerated from 26% growth in the fourth quarter). The company has also increased its cost discipline efforts, which drove operating margins to 31.6% (compared to 25% in the first quarter of 2023). With regards to GenAI, while we are cognizant of the potential risks to the dominance of search, we believe that on the range of outcomes, Alphabet remains well positioned through its massive user distribution (9 products with over 1 billion users each), long-standing AI research labs (DeepMind and Google Brain), top AI talent, a solid cloud computing division in Google Cloud, and deep pockets for investing in AI. During the quarter, Alphabet also held its annual I/O conference, where it provided an update on its efforts in AI including: Gemini is now used by 1.5 million developers; model quality is expanding rapidly (e.g., context window is now 2 million tokens of length); the new genomics model, Alphafold 3 can predict structures of molecules and potentially accelerate drug discovery; new TPU6 AI chips has shown a 4.7 times improvement in compute performance compared to the prior generation; and Gemini for workspace is showing early data on a 30% increase in user productivity. Alphabet also has real value in assets such as Waymo, which are not factored into valuation today (and are potentially included at a negative valuation as they currently generate losses, hurting EPS). We continue to believe that the current valuation of Alphabet presents an attractive risk/reward for long-term owners of the business and have therefore increased our position.”
4. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 179
Dan Niles, Niles Investment Management founder and portfolio manager, said while talking to CNBC that the “poster child” of AI Nvidia’s declines represent a fundamental shift in tech stocks where investors expect ROI.
“During 2021, revenue growth for Nvidia was up 62% year over year.. 2022, revenues were up 6% and the stock went down from peak to trough 66%. If you look at CapEX spending over the last two years and you see Nvidia’s revenues, Nvidia’s revenues last year grew over a 100%, this year they are gonna grow over a 100%, I think what you are gonna see next year is a dramatic slowdown not only from the spending from hyperscalers but also in Nvidia’s revenues as those hyperscalers grow into all of this money that they have spent that’s not actually generating an increase in their revenue.”
What Niles is saying is not new. After Nvidia’s latest quarterly report, here is what InsiderMonkey’s Research Director Inan Dogan wrote in a report:
Nvidia’s market cap before today’s earnings report was $3.1 trillion. This means investors expect NVDA to earn around $140 billion per year once it becomes a more mature company like Alphabet Inc (GOOGL) which is currently trading at a forward P/E multiple of 21. NVIDIA Corporation’s quarterly revenue and profit were $30 billion and $16.6 billion respectively though. Is it reasonable to assume that NVDA’s quarterly profit can go from $16.6 billion today to $35 billion in a few years and then continue to grow at the same rate that GOOGL’s quarterly profit is growing?
Investors were surprised to see that NVDA projected only an 8% quarterly revenue growth rate for its next quarterly report (vs. 15% for the last quarter). The decline in quarterly revenue growth rate is really concerning and if the decline continues, it will be awfully clear to investors that NVDA will never get to the $140 billion annual profit figure that its current stock price is demanding.
Aoris International Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“If Information Technology was the dominant sector for the quarter, NVIDIA Corporation (NASDAQ:NVDA), which is the largest supplier of microprocessors used for generative AI applications, was the dominant company. NVIDIA’s share price rose by a third in the quarter and has increased by 255% so far this year. Since the beginning of 2023, its market value has risen by 8.3x, or $4.3 trillion, making NVIDIA the third largest company in the world by this measure.
As a result of the unusually strong stock price performance from NVIDIA and a few other large companies, equity markets have become increasingly concentrated. You can see this in the chart below, which shows that on 30 June, 27% of the market value of the 500 largest US companies was attributable to just five companies, more than twice the average of the last 20 years.
The composition of the Aoris International Fund will always be very different to that of the broader equity market. There will be periods, such as the most recent quarter, where this contributes to our performance lagging that of our benchmark. When it comes to NVIDIA and other AI-centric companies, rapid growth is exciting, but it makes it difficult for us to judge what is normal. Our preference is to own established leading companies where we can make a more confident, evidence-based judgement about their growth and profitability.”
3. Apple Inc (NASDAQ:AAPL)
Number of Hedge Fund Investors: 184
Dan Niles, Niles Investment Management founder and portfolio manager, said during a recent program on CNBC that despite his view that the market should look beyond Mag. 7 stocks for more value, he likes Apple “a lot.”
“Apple had very little for the last three years. It grew 2% two years ago, 0% last year, 4% this year, I think next year driven by people upgrading their iPhones which they last did during COVID you are gonna see that growth rate be over 10%.”
However, the assumption that we will see a huge upgrade cycle of iPhone just because of AI is big and comes with a lot of risks. Apple Inc (NASDAQ:AAPL) trades at a forward PE multiple of around 35x, well above its 5-year average of nearly 27x. Its expected EPS forward long-term growth rate of 10.39% does not justify its valuation, especially with the iPhone upgrade cycle assumption. Adjusting for this growth results in a forward PEG ratio of 3.33, significantly higher than its 5-year average of 2.38.
Mar Vista Focus strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q2 2024 investor letter:
“Investors were reminded of the strength of the Apple Inc. (NASDAQ:AAPL) ecosystem as management demonstrated how generative AI solutions would be integrated into Apple’s 1.2 billion iPhone installed base. Apple plans to integrate generative AI features into its iOS 18, which will be broadly released in the fall with the iPhone 16. We believe Apple should benefit from generative AI as it will spur a meaningful iPhone upgrade cycle and create new avenues of monetization through its app store and advertising offerings. We believe this will support intrinsic value growth that will range between high-single-digits and low-double-digits over our investment horizon.”
2. Microsoft Corp (NASDAQ:MSFT)
Number of Hedge Fund Investors: 279
Dan Niles, Niles Investment Management founder and portfolio manager, said while talking about Mag. 7 stocks that Microsoft should “worry” investors.
“Despite their relationship with OpenAI, they missed their Azure numbers.”
Microsoft Corp (NASDAQ:MSFT) shares recently fell following its latest quarterly results which showed the company’s Cloud business growth was lower than expected. For the ongoing quarter, Microsoft Corp (NASDAQ:MSFT) expects revenue in the range of $63.8B and $64.8B, compared to the $65.07B estimate. Microsoft Corp (NASDAQ:MSFT) Azure revenue is expected to grow by 28% and 29% year over year.
But what about AI? While Microsoft does not mention specific AI numbers, analysts believe Copilot is already playing a key role in growth at several segments of the company. Microsoft Corp (NASDAQ:MSFT) Office’s commercial customer sales soared to $48 billion, significantly up from last year’s 10% growth, likely driven by Copilot Pro subscriptions. Office for individual users also saw a boost, with sales reaching $6.2 billion, a 4% increase compared to last year’s 2% growth, indicating accelerating growth from Copilot integration. Dynamics ERP and CRM software sales hit $6.3 billion, up 19%, surpassing last year’s 16% growth. This uptick is likely due to customers switching to Dynamics for the Copilot integration in the Dynamics Contact Center platform, which provides automated customer service chatbots and significant cost reductions. Bing sales jumped 3% year over year as more users switched to the search engine from Google Search, thanks to AI features.
While Microsoft Corp (NASDAQ:MSFT) expenses are expected to remain elevated, its investments are working and will bear fruit in the long term. The stock is down about 11% over the past month. It trades 26x next fiscal year’s earnings. MSFT could be an attractive buy on the dip for long-term investors.
Mar Vista Focus strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q2 2024 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) continues to occupy a strong position, poised to capture market share as businesses, both large and small, navigate the transition to a digital-first landscape and embrace generative AI-driven solutions. The company’s commanding presence in the enterprise arena, combined with its comprehensive product portfolio encompassing Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS), establishes it as a crucial provider of IT solutions for companies of all scales. Microsoft is effectively executing its strategy in a sizable market by offering a roadmap for digital transformation and adoption of innovative, AI-driven solutions, such as ChatGPT, while enhancing productivity and reducing costs. Consequently, we anticipate that Microsoft’s solutions should exhibit resilience even in a more challenging macroeconomic environment, supporting low-double-digit growth in intrinsic value within our investment horizon.”
1. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Investors: 308
Dan Niles, Niles Investment Management founder and portfolio manager, said the following while talking about Amazon.
“Ecommerce, I thought there’d be share gains.. they could do that profitability. Margins came in worse than people thought.”
AWS’s revenue growth accelerated from 17.2% in Q1 to 18.8% in Q2, driven by a shift from on-premises infrastructure to cloud solutions and increasing demand for AI capabilities. Amazon.com Inc (NASDAQ:AMZN) advertising segment added over $2 billion in revenue year-over-year, indicating significant potential in video advertising and opportunities within Prime Video offerings.
Like other tech companies, fears stemming from high CapEX are keeping investors on the sidelines. Amazon.com Inc (NASDAQ:AMZN) spending is expected to rise amid broadband project Project Kuiper and AI growth. Investors are still figuring out whether AI monetization and ROI will come anytime soon. Amazon.com Inc (NASDAQ:AMZN) is also facing a slowdown in consumer spending, especially for higher-ticket items like electronics and computers.
Based on Amazon.com Inc (NASDAQ:AMZN) Q3 guidance, its revenue growth would be 11%. The stock is trading 35x its fiscal 2025 earnings estimates set by Wall Street. This shows the stock is fairly priced and investors looking for strong growth could look elsewhere.
Diamond Hill Select Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter:
“Among our top individual contributors in Q2 were Amazon.com, Inc. (NASDAQ:AMZN), Texas Instruments and Mr. Cooper Group. Internet retail and cloud infrastructure company Amazon is benefiting from strong profitability, particularly in its Amazon Web Services (AWS) business. Shares also received a boost amid growing optimism around the demand for AWS as Amazon customers’ investments in generative AI projects continue growing.”
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 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: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.
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