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Can Amazon.com (AMZN)’s Cost Optimization Boost Profit Growth?

We recently published a list of 10 AI Stocks Trending on News and Analyst Ratings. In this article, we are going to take a look at where Amazon.com Inc (NASDAQ:AMZN) stands against other AI stocks trending on news and analyst ratings.

In a surprising turn of events, a consortium led by Elon Musk said on Monday that it has offered $97.4 billion to buy the nonprofit that controls OpenAI. Marc Toberoff, Musk’s attorney, confirmed that he submitted the bid for all OpenAI’s assets to its board.

The offer is a twist to Musk and OpenAI CEO Sam Altman’s rift that began last August when Musk filed a lawsuit against OpenAI. The lawsuit accused the company of putting profits before its initial nonprofit mission which aimed to advance AI in a way that benefits humanity.

The two prominent figures of the tech world are still involved in a legal battle over the future of this AI startup.

READ ALSO: 10 AI News Making Waves on Wall Street and 12 High-Flying AI Stocks This Week

Analysts have been skeptical of Musk’s move ever since it came to light.

“I think it’s fair to be pretty suspicious of this considering that he has a competitor himself… which is structured as a for-profit company, so I think there’s more than meets the eye here”.

– Christie Pitts, a tech investor in San Francisco, told the BBC.

Sam Altman has this to say about the bid:

Musk was “a competitor who is not able to beat us in the market and you know, instead is just trying to say, like, ‘I’m gonna buy this’ with total disregard for the mission”.

– Altman told Axios

Plus, this is what Altman wrote on X as a reply to Musk’s bid:

“No thank you but we will buy twitter for $9.74 billion if you want.”

OpenAI was cofounded by Musk and Altman in 2018 as a non-profit, with Musk leaving before the company took off. Musk’s lawsuit against OpenAI and Altman says that the founders originally approached him to fund a nonprofit focused on developing AI to benefit humanity. However, it was now focused on making money.

“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens.”

-Elon Musk

On the contrary, Altman said that he has no interest in the offer, stating that OpenAI is not for sale.

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.

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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 286

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 February 11, CMB International Securities analyst Saiyi He maintained a “Buy” rating on the stock and set a price target of $268.00. The firm has noted Amazon (NASDAQ:AMZN)’s strong financial performance and growth potential for the rating, stating that its 4Q24 results demonstrated a robust increase in revenue and noteworthy growth in operating profit. Cost optimization and operational efficiency improvements in both North America and AWS segments have led to this growth.

Moreover, the company has also been extending efforts towards scaling and cost optimization, which eventually looks good for operating profit growth. Saiyi He also noted Amazon’s expansion in advertising revenue, and while there may be challenges such as foreign exchange headwinds and incremental investments slowing margin expansion in the AWS segment, the company’s innovation and infrastructure investment are anticipated to help sustain its competitive edge.

Firms such as JP Morgan are also bullish on the stock, citing that “AMZN has a very clear path to AI monetization through AWS, and it remains early in what should be an extended cycle of innovation and technology transformation.”

Overall, AMZN ranks 1st on our list of AI stocks trending on news and analyst ratings. 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. 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 the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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:

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