5 Cheap AI Stocks to Buy in 2024

In this article, we discuss the 5 cheap AI stocks to buy in 2024. To read the detailed analysis of the artificial intelligence industry, go directly to the 11 Cheap AI Stocks to Buy in 2024.

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

Average Analyst Price Target Upside: 19.00%

Average Analyst Price Target: $208.23

Number of Hedge Fund Holders: 293

Amazon.com, Inc. (NASDAQ:AMZN) is a multinational tech company that offers various AI-integrated solutions and products like its AI Services, an AI chatbot called Q, etc.

In the fourth quarter, hedge fund sentiment was positive toward Amazon.com, Inc. (NASDAQ:AMZN) as the number of hedge funds with investments in the stock went up to 293, up from 286 in the previous quarter. Fisher Asset Management increased its stake in the stock by 3% to 42.24 million shares worth $6.42 billion.

On February 1, Amazon.com, Inc. (NASDAQ:AMZN) announced its fourth-quarter earnings result with an EPS of $1.00 and the revenue of $170 billion grew by 13.9% year-over-year (YoY), surpassing the estimates by $3.74 billion.

Polen Capital stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN), which saw significant price appreciation throughout much of 2023, saw its share price increase materially in Q4 following the company’s Q3 2023 earnings report. We have yet to see the long-awaited re-acceleration in AWS (Amazon Web Services) revenue growth. However, in our estimation, the segment’s growth has likely bottomed, and we could see accelerating growth in 2024. Further, Amazon’s e-commerce business has gradually re-accelerated from 2022’s levels and, perhaps most importantly, the company’s margins and free cash flow have rebounded materially from last year. This rebound in margins and free cash flow at Amazon has been a key component of our long-term thesis for the business, and we expect the improvement in these metrics to continue into 2024 and beyond (though perhaps not linearly) as the company continues to optimize costs and capital expenditures. Our position in Amazon reflects our positive long-term expectations of the business, and it is currently our largest absolute weight in the Portfolio.”