5 Best Artificial Intelligence Stocks To Buy Now

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

Number  of Hedge Fund Holders (Q1): 271

Amazon.com, Inc. (NASDAQ:AMZN) is an American e-commerce giant. As of August 16, the company stock surged almost 40% from its June lows after its AWS internet business segment saw a 33% sales growth in the recent quarter. AWS offers a vast set of machine learning services and was named a leader in Gartner’s Cloud AI Developer services.

On July 29, BofA analyst Justin Post maintained a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN)’s shares and upgraded the price target to $170 from $168. Post referred to the company’s Q2 results as “some blemishes on otherwise solid” and mentioned the positive guidance to be “better than feared.” The analyst further noted that he sees the company as “one of the few acceleration stories in the Internet in 2022”.

Here is what Oakmark Funds has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2022 investor letter:

“Amazon (NASDAQ:AMZN) is the leading e-commerce and cloud-computing provider in the world. Two-thirds of U.S. households are Amazon Prime subscribers, and over half of all online product searches now start on Amazon. We believe the company’s strong customer loyalty and massive infrastructure are significant barriers to entry in a growing e-commerce market. Separately, Amazon Web Services (“AWS”) controls nearly half of the market in cloud computing. We believe AWS has become utility-like in nature and scale and we expect healthy growth moving forward as IT workloads continue moving to the cloud. More recently, concerns about rising investment spending have weighed on the stock-as they have in times past-providing us another opportunity to purchase shares at a very attractive price. At our purchase price and valuing AWS like its peers, an investor isn’t paying much of anything for the immensely valuable e-commerce franchise.”