Top 10 Trending Stocks as AI Hype Fades

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

Number of Hedge Funds Investors: 286

Mark Mahaney from Evercore ISI said in a latest program on CNBC that Amazon.com, Inc. (NASDAQ:AMZN) is one of his top picks as he believes the stock is “dislocated” after the latest selloff.

“If Amazon trades below 25, then that’s the market telling you that they think there are material negative revisions coming up. If you have belief that that’s going to happen, then you stay away from the stocks. Right now, I don’t believe that we’re going to have negative revisions, so I’d be waiting in here, buying some of these names. But I’d be very selective about it, starting off with the ones that are most dislocated in my book—that’s Amazon, then Uber.”

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

“Amazon.com, Inc. (NASDAQ:AMZN) posted better-than-expected quarterly earnings, lifting investor confidence in the e-commerce giant’s ability to generate margin while continuing to invest into its large AI and retail end markets.

Amazon’s shares experienced volatility throughout the year as IT spending and the company’s margin structure came under scrutiny. Despite this, the stock outperformed as sentiment and results improved across both the overall environment for Amazon Web Services and the company’s ability to show margin.”

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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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