5 Best Artificial Intelligence Stocks To Invest In Right Now

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

Number of Hedge Fund Holders: 243

Amazon.com, Inc. (NASDAQ:AMZN) ranks 3rd on the list of 12 best artificial intelligence stocks to invest in right now. The Washington-based multinational technology company specializes in e-commerce, digital streaming, and artificial intelligence. The company was founded in 1994 and operates its cloud computing business through its AI-powered Amazon Web Services (AWS).

Amazon Web Services (AWS) sales accounted for 12.5% of the overall revenue for Amazon.com, Inc. (NASDAQ:AMZN) in the quarter ended April 2021, totaling $13.5 billion, a 32% increase year-over-year. 

Earlier this year, the company acquired communication tech firm Wickr. The collaboration allowed its users to enjoy additional security features across messaging, phone and video chatting, file sharing, and collaboration.

The company has a market cap of $1.69 trillion. In the second quarter of 2021, Amazon.com, Inc. (NASDAQ:AMZN) reported an EPS of $15.12, beating consensus estimates by $2.9. The company’s second-quarter revenue came in at $113.1 billion, an 27% increase year-over-year. Shares of AMZN jumped 5% over the last twelve months.

There were 243 hedge funds that reported owning stakes in Amazon.com, Inc. (NASDAQ:AMZN) at the end of the first quarter. The total value of these stakes at the end of Q1 is $50.42 billion.

Argosy Investors mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2021 investor letter:

“So how are our largest holdings affected in a world of higher wage inflation? As a general rule, I will evaluate current and potential future holdings on their capital intensivity and their ability to raise prices. Amazon is now (a part of) our top 5 largest equity holdings. Amazon is a more complex story. Their AWS business is largely a similar story to Facebook. Their first-party retail business is very asset-and labor-intensive given their extensive warehousing footprint. I think Amazon would have more pricing power than any other player, and despite being one of the largest employers in the US, bricks-and-mortar retail is likely still more asset- and labor-intensive than Amazon’s ecommerce footprint. With all that said, overall Amazon’s first-party business would be adversely impacted by inflation, but the combination of Amazon’s AWS and advertising business should provide fairly robust inflation protection.”