11 Best Augmented Reality Stocks to Buy According to Hedge Funds

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1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 339

Amazon.com, Inc. (NASDAQ:AMZN) offers its customers a range of products and services. It also offers advanced tools for AR and VR developers through its Amazon Web Services (AWS) platform. Some of its offerings in the AR/VR space include View in Your Room, which allows users to visualize various pieces of furniture in their space before buying them, and Virtual Try-On, which enables users to see how clothing might look on them.

In a report released on April 28, Stephen Ju from UBS maintained a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) with a price target of $253.00. The company has strong fundamentals and reported a 10% year-over-year revenue growth in 2024. Operating income reached $21.2 billion, undergoing a notable 61% growth. Its AWS segment, which includes its AR offerings, continued robust performance, reporting a 19% growth and an annualized revenue run rate of $115 billion.

Amazon.com, Inc. (NASDAQ:AMZN) is also investing heavily in AI. Its capital expenditures (capex) for 2025 are anticipated to be around $100 billion, most of which would go to AI. The company also said that falling AI inference expenses would fuel increased AI infrastructure spending.

Overall, AMZN ranks first among the best augmented reality stocks to buy according to hedge funds. While we acknowledge the potential of augmented reality stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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