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Amazon.com (AMZN) Faces Tariff Trouble – Cloud Concerns Grow as BofA Trims Target

We recently published a list of 10 AI Stocks to Watch Now. In this article, we are going to take a look at where Amazon.com Inc. (NASDAQ:AMZN) stands against other AI stocks to watch now.

The trade war between two of the world’s biggest economies, China and the US, is deepening even further. In a tit-for-tat retaliatory move, China has imposed an 84% tariff on all imports from the US starting April 10. This move comes after Trump’s duties on Beijing, which have now been increased even further to a whopping 145%.

Tech stocks have been plunging in response. Apple, for instance, has been doing the majority of its manufacturing in China, and the trade war is likely going to raise the price of its iPhones. Even though President Trump has confidence that the tech giant can make its phones in the U.S., experts aren’t so sure.

READ NOW: 10 AI Stocks Investors Are Watching Today and 9 Trending AI Stocks Making Headlines Today

According to Needham analyst Laura Martin, reshoring iPhone manufacturing may take years and result in the price of iPhones skyrocketing. Similarly, Wedbush analyst Dan Ives has said that an iPhone would cost $3,500 if produced in the U.S.

Nevertheless, President Donald Trump has just announced a 90-day pause on his administration’s “reciprocal tariffs.” These would have affected the company’s production locations in Vietnam, India, and Thailand.

Amid all this chaos, artificial intelligence continues to make leaps and bounds. In recent news, Silicon Valley startup Lightmatter has revealed it has developed a new type of computer chip. This chip is capable of both speeding up artificial intelligence work and using less electricity in the process.

The company is one of the few that seeks to use beams of light to move data between computers, instead of electronic signals. However, the company also believes that it can use these very beams of light to carry out the computation.

“What we’re doing is looking at the future of where processors can go. We fundamentally care about computers, and this is one of the alternative paths. There’s trillions of dollars of economic value that’s behind the idea that computers will keep getting better.”

– Nick Harris, Lightmatter’s CEO

In other news, President Donald Trump has recently told Cabinet members that billionaire Elon Musk will leave his administration role in the coming months. Musk has been the subject of hate after his efforts to cut the federal workforce. His involvement in politics has been hurting his company as well.

“I think he’s been amazing, but I also think he’s got a big company to run … And at some point, he’s going to be going back. He wants to. I’d keep him as long as I could keep him.”

-President Donald Trump.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points  (see more details here).

25 best things to buy on Amazon under $20 (Photo credit: Pixabay)

Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 339

Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions. On April 9, Bank of America reiterated the stock as “Buy” and lowered its price target to $225 per share from $257 due to tariff concerns.

“While Amazon sales seemingly felt little impact from 2018 China tariffs, the widespread (and much larger) 2025 global tariffs are a potential new ballgame for supply chains and costs.”

The firm and other names, such as Mizuho, anticipate that Amazon’s cloud business will face challenges moving forward.

Overall, AMZN ranks 1st on our list of AI stocks to watch now. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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