10 AI Stocks Investors Are Watching Right Now

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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 Right Now. On August 13, Telsey analyst Joseph Feldman reiterated an Outperform rating on the stock with a $265.00 price target.

The rating affirmation comes as Amazon continues to leverage its substantial $670 billion annual revenue base to expand market share.

“TAG View: Overall, this expansion to offer same-day delivery of perishable groceries creates a one-stop shop for an array of customer needs. Importantly, we believe this is a strong move for Amazon, deepening relationships with and share of wallet among its Prime member customers, as well as positioning the company to compete better with other leaders in the grocery space..”

This expansion builds on Amazon’s strength and positions it better against its grocery competitors. The firm also believes that the tech giant can leverage its Prime membership base, small business relationships, and technological advantages to continue gaining market share.

Some major growth opportunities further lie in grocery, private brands, pharmacy, logistics, and generative AI. These areas can make the company more valuable in the future.

“TAG Thesis: Broadly, Amazon should continue to gain market share by leveraging its sticky Prime member base, small business relationships, and technological edge. Amazon’s ability to fuel key growth opportunities—grocery, private brands, pharmacy, logistics, and generative AI—should make it more valuable. The solid growth and profitability of AWS and advertising should continue to outperform and support Retail. We maintain our Outperform rating and 12-month price target of $265, which is based on applying an EV/EBITDA multiple of ~15x to our 2026 EBITDA estimate of ~$193B.”

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 in the Spotlight Today and 10 AI Stocks Analysts Are Tracking Closely.

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