1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 381
Amazon.com, Inc. (NASDAQ:AMZN) continues to gain renewed attention from Wall Street, landing itself the top spot on our list of 12 AI Stocks in Focus on Wall Street.
On April 21, Cantor Fitzgerald analyst Deepak Mathivanan raised the price target on the stock to $280.00 (from $260.00) while maintaining an “Overweight” rating. The firm feels strongly confident in Amazon’s AI-driven AWS growth and long-term margin expansion.
Discussing first-quarter performance expectations, the firm noted that the company is likely to report a strong quarter, driven by accelerating growth in AWS. This acceleration is in turn led by healthy demand from AI labs and recent supply unlocks, the firm said.
Recent company shareholder letters highlight several contributors to growth near-term, including 100% growth in its chips business. Backlog growth for the first and second quarter is also likely to experience a sharp increase, fueled by commitments from players such as OpenAI and Anthropic. The growth is anticipated to reach over $450B by the end of 2Q26E.
The firm anticipates AWS to see growing contribution from diverse Enterprise workloads in 2026.
Discussing retail, the firm expects in-line results with low-double-digit year-over-year revenue growth as well as 40-basis-point year-over-year margin expansion in the first quarter.
On outlook, AMZN’s 2Q guide is likely to bracket current Street estimates on revenues and EBIT. 2Q EBIT is likely to be pressured by elevated fuel costs (partly offset by surcharge), Q/Q seasonal SBC ramp, and incremental infra operating expenses. On the call, we will be watching for progress on infra buildout and incremental demand for AI. Overall, there is a lot to like at AMZN in 2026.
Amazon.com Inc. (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 to grow, 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 the cheapest AI stock.
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