5 Stocks Most Bought by Hedge Funds in Q1 2026

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

Number of Hedge Fund Holders: 353

Amazon.com, Inc. (NASDAQ:AMZN) ranks among stocks most bought by hedge funds in Q1 2026. On May 27, UBS reiterated its Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) with a price target of $333.

The research firm updated its methodology for estimating AWS segment revenue after previously overestimating its Q1 2026 forecast. UBS now separates performance obligations and backlog into different parts, including the core non-AI business, Bedrock, and recent contracts with OpenAI and Anthropic.

The firm projects that Bedrock alone had about $35 billion in backlog as of the end of Q1 2026, which represents roughly 300% growth year-over-year. UBS also expects AI to make up about 26% of AWS revenue by the end of 2026 and 30% in 2027. It estimates that AWS could add $350 billion in backlog in 2026 and beyond.

UBS estimates Amazon.com, Inc.’s (NASDAQ:AMZN) 2027 operating income could be about 40% higher than the market consensus. The research firm also noted that the stock trades at around 18 times its 2027 earnings estimate on a GAAP price-to-earnings basis.

Amazon.com, Inc. (NASDAQ:AMZN) is an American technology company that focuses on e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best Single Digit Stocks to Buy Right Now and 12 Best Revenue Growth Stocks to Buy According to Wall Street Analysts.

Disclosure: None.

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