10 AI Stocks Investors Are 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 Investors Are Watching Closely.  On July 16, Cantor Fitzgerald analyst Deepak Mathivanan raised the price target on the stock to $260.00 (from $240.00) while maintaining an “Overweight” rating.

The firm increased its FY26E EBIT estimates by 9% and reiterated its Overweight / Top pick rating.

Earnings Preview: “Amazon is likely to report 2Q25E results with revenues near the midpoint, but EBIT should come in ahead of prior guidance. US non-store retail sales were up +7% y/y in 2Q, a slight acceleration vs. 1Q – indicating favorable trends for AMZN’s NA retail growth. Meanwhile, AWS growth should come near +17% y/y in 2Q25E. The key focus will be on 3Q25E outlook. We expect revenue guide to bracket $175B and EBIT (at high-end) near $19B.

While there are lingering uncertainties on trade, AMZN CEO recently noted that prices on the platform have remained relatively stable – which bodes well for 3Q25E EBIT guide. Additionally, we think AMZN has plenty of room to improve efficiency across various layers of its logistics network. AMZN shares have lagged the broader Mag-7 (ex-TSLA) group YTD, and sentiment appears mixed into the print. We like the risk/reward at current levels.

We have increased our FY26E EBIT estimates by 9% and reiterate our Overweight / Top pick rating. Our revised PT of $260 is based on 30x FY26E EBIT (vs. $240 previously).”

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 Getting Wall Street’s Attention and 10 Must-Watch AI Stocks on Wall Street

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