5 Best AI Stocks for 2022

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

Number of Hedge Fund Holders: 242

Amazon.com, Inc. (NASDAQ:AMZN) uses artificial intelligence to steer its businesses ranging from e-commerce to video streaming, Alexa, and cloud computing.

Cowen analyst John Blackledge believes robust growth at Amazon Web Services and AMZN’s advertising business will propel operating margin expansion. In addition, Blackledge expects the company’s sales growth to accelerate starting in the second quarter of 2022. On December 13, Blackledge maintained an Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) and increased his price target for the stock to $4,500 from $4,300.

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Amazon.com, Inc. (NASDAQ:AMZN) with 1.93 million shares worth more than $6.34 billion. Overall, 242 funds of the 867 hedge funds tracked by Insider Monkey reported owning stakes in Amazon.com, Inc. (NASDAQ:AMZN) at the end of the third quarter of 2021.

Here is what Davis Opportunity Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter:

“E-commerce, online search, and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Amazon.com. We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale, and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”