11 Best Safe Stocks to Buy According to Hedge Funds

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

Number of Hedge funds holding: 339

Forward Dividend: $0

Amazon.com, Inc. (NASDAQ:AMZN) is a leading online retailer widely recognized for its e-commerce, cloud computing, and digital streaming services. Incepted in 1994, the company operates through three segments: North America, International, and Amazon Web Services (AWS). The giant mainly serves developers, consumers, advertisers, employees, and enterprises.

Behind Amazon.com, Inc. (NASDAQ:AMZN) as a solid case is the current price level. With the stock trading lower, analysts consider it a buying opportunity, especially given its huge AI and robotic investments that are at the forefront of what’s next. While the short-term position of the company shows a somewhat blurred picture, the long-term efficiency gains are quite evident when considering its footing in AI, fueling a robotics paradigm shift.

The 750,000 mobile robots and several thousand robotic arms in its warehouses highlight that such a vision is already coming to life. These initiatives are anticipated to generate as much as $10 billion in savings annually over a 5-year time period. When we say Amazon.com, Inc. (NASDAQ:AMZN) is all-in on AI capability, we’re not exaggerating. The cloud unit of the e-commerce powerhouse has unveiled new AI chips and foundation models, and all of this is done to attract AI developers.

And here’s the best part. Jeff Bezos, the CEO of Amazon.com, Inc. (NASDAQ:AMZN), is apparently overseeing the development of 1,000 internal AI applications at Amazon and the enhancement of AWS’s AI infrastructure. The company’s $8 billion investment in Anthropic and the joint development of a supercomputer for AI training speak about its aggressive efforts to gain an edge in high-end AI services.

The one-year price target of $248.71 translates to an upside of more than 40%. In general, analysts, when providing the price targets for Amazon.com, Inc. (NASDAQ:AMZN), are confident about the bright and thriving future of the company. For investors valuing long-haul gains, AMZN is a smart and secure pick.

Overall, AMZN ranks first on our list of best safe stocks to buy according to hedge funds. While we acknowledge the potential of safe 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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