10 AI Stocks Everyone Is Watching Closely

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1.  Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 328

Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks Everyone Is Watching Closely. On July 28, Morgan Stanley reiterated the stock as “Overweight” with a $300 price target. The firm believes that Amazon is the largest beneficiary of the big beautiful bill passed by Congress.

Not just Amazon, Morgan Stanley believes that the One Big Beautiful Bill has the potential to pull forward billions of dollars of cash flow for major technology companies.

In an investor note, the analysts noted that Amazon is expected to receive $15B of annual free cash flow benefit between 2025 and 2027 and $11B in 2028. According to them, most of the benefit will be reinvested in Amazon Web Services and generative AI (GenAI) offerings in retail.

However, even if it invests 50% of the annual cash flow, it will be able to drive a “much faster path to billions of annual automation savings.”

“We see AMZN capturing ~$15bn/year in tax benefits. While most will be re-invested in AWS, even investing 50% of the annual cash flow benefit paints a much faster path to billions of annual automation savings.”

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.

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 have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks on Wall Street’s Radar and 10 AI Stocks Analysts Are Tracking Closely

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