Top 14 AI Stocks on Wall Street: News and Analyst Ratings

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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. As reported on February 13, Morgan Stanley managing director Brian Nowak told Yahoo Finance that Amazon’s seemingly unnoticed robot push is widening its competitive lead in retail. This could boost its profit margins significantly.

“This is, I think, the most underappreciated part of Amazon’s story — the potential retail leverage to come [from its robot investments]”.

-Nowak on Yahoo Finance’s Opening Bid podcast

Nowak revealed that Amazon has developed six significant next-generation fulfillment centers and has industrial robots that can increase efficiencies across storage, inventory management, and other processes. Forbes reported that these robots are powered by complex AI systems that empower them to navigate complex warehouse environments. According to Nowak, considering 30% to 40% of Amazon’s US units are fulfilled through next-generation robotics-enabled warehouses by 2030, the company could avail $10 billion-plus savings. Nowak from Morgan Stanley has an “Overweight” (or Buy equivalent) on Amazon’s stock with a $280 price target.

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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