5 Best AI Stocks For 2023

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

Number of Hedge Fund Holders: 240

Amazon.com, Inc. (NASDAQ:AMZN) focuses on e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. Amazon Web Services (AWS) offers the most complete set of artificial intelligence and machine learning services to meet business needs. The company reported a Q4 revenue of $149.2 billion, up 8.6% year-over-year, beating Wall Street estimates by $3.43 billion. Amazon.com, Inc. (NASDAQ:AMZN) is one of the best AI stocks for 2023. 

On February 14, Loop Capital analyst Rob Sanderson maintained a Buy rating and a $140 price target on Amazon.com, Inc. (NASDAQ:AMZN) after analyzing the Q4 results. The analyst believes that the company’s retail business has made significant progress towards improving unit economics, except for some non-recurring charges such as employee severance, impairment charges, and increased insurance liabilities.

Among the hedge funds tracked by Insider Monkey, 240 funds were long Amazon.com, Inc. (NASDAQ:AMZN) at the end of December 2022, compared to 269 funds in the prior quarter. Harris Associates is a prominent stakeholder of the company, with 19.3 million shares worth $1.6 billion. 

Diamond Hill Large Cap Strategy made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2022 investor letter:

“At Amazon.com, Inc. (NASDAQ:AMZN), recessionary and inflationary headwinds drove weaker demand and higher costs for its AWS (Amazon Web Services) and retail businesses. While over investment in the retail business during the pandemic and continued growth of investments in AWS could lead to near-term pressure on profitability, we believe Amazon’s competitive advantages will continue to grow and that the business has the potential to grow much faster than the overall economy in the coming years.”