By Designing Its Own Chips, Amazon (AMZN) Is Making A Bigger AI Bet Than You Think

Amazon.com Inc. (NASDAQ:AMZN) is one of the 12 Best Dow Stocks to Invest In Right Now. According to a report released on July 2, Monness analyst Brian White reiterated a Buy rating on Amazon.com Inc. (NASDAQ:AMZN) while increasing the price target. The analyst raised the firm’s price target on the stock from $241.7 to $315. The upward revised price target implies an additional 29% upside from current levels.

Amazon.com Inc. (NASDAQ:AMZN) is one of the 12 Best Dow Stocks to Invest In Right Now.

Adding to the positive outlook, Wells Fargo also raised its price target on Amazon.com Inc. (NASDAQ:AMZN) on the same day. Ken Gawrelski from Wells Fargo slightly increased the firm’s price target on the shares from $312 to $313 and reaffirmed a Buy rating. The analyst’s assigned price target is close to the median Wall Street price target of $320, based on estimates from 70 analysts covering the stock.

On July 2, the company’s top hardware executive said in an interview with CNBC that Amazon.com Inc. (NASDAQ:AMZN) is focusing on developing its own chips for key consumer devices. It believes this will improve the integration between hardware and software, especially for AI-powered experiences.

The head of devices and services at Amazon, Panos Panay, commented:

“We do make our own end-to-end silicon for the devices that we ship.” He added that Amazon’s custom silicon is in devices such as the Echo Show 8, Echo Show 11, and Fire TV.

Amazon.com Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data center networks.

While we acknowledge the risk and 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. If you are looking for an AI stock that is more promising than AMZN and that has 10,000% upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best Major Stocks to Buy According to Analysts and 7 Underperforming Data Centre Stocks to Buy According to Short Sellers.

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1