Top 12 AI Stocks Dominating the Market Right Now

1.  Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 286

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 7, Bloomberg reported that Amazon has warned investors that it may face capacity constraints in its cloud computing division despite its plans to spend over $100 billion this year. Chief Executive Officer Andy Jassy wants to ensure that Amazon turns into an “AI supermarket”, which is why it is spending huge sums to maintain its edge in cloud computing services.

“It is true we could be growing faster were it not for some of the constraints on capacity”.

-Andy Jassy

Jassy stated that the power capacity and supply of chips from third parties and Amazon’s own design unit are preventing Amazon Web Services from bringing new data centers online. However, the said constraints will likely ease in the second half of 2025.

Analysts note that these capacity constraints are also being faced by rivals Google and Microsoft.

“AWS growth did not accelerate as anticipated and instead matched Q3 levels, indicating that the company is challenged by the same types of capacity constraints facing rivals Google and Microsoft”.

-Sky Canaves, an analyst at Emarketer.

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.

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