We recently published 13 Stocks That Crossed Jim Cramer’s Radar. Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks Jim Cramer discussed.
Amazon.com, Inc. (NASDAQ:AMZN)’s GPU spending is a metric that Jim Cramer has closely tracked this year. He asserted in August, after the firm’s earnings report, that over-reliance on in-house Trainium AI chips might be hurting the company. Then, in August, Cramer discussed a Morgan Stanley piece that clarified to him that price-performance was the key metric of performance for Amazon.com, Inc. (NASDAQ:AMZN)’s cloud business. As a result, Cramer concluded that “the growth fears had to do, and I helped propound this, which was I think, in retrospect, ill-advised by me. That, Amazon was underspending with NVIDIA.” In this episode, he opined that Amazon.com, Inc. (NASDAQ:AMZN)’s cloud business, AWS, is growing well and discussed a downgrade by Rothschild Redburd, which cut the rating to Hold from Buy and kept a $250 price target:
Copyright: prykhodov / 123RF Stock Photo
“Amazon hasn’t spent nearly enough, but David, they just did the bond deal.
“Amazon Web Services, I’m going to see them. I think that their acceleration is good. Do I want to buy these stocks today? Let everybody, we had that great survey from Bank of America, let everybody sell these, let them, let people get out of them, then they’re a buy, that’s how the market works. According to How to Make Money in Any Market.
“[After Carl Quintanilla mentioned AMZN and MSFT were downgraded by Rothschild Redburn to Neutral who looked at cost of the buildout relative to Cloud 1.0 and argued that GPU deployments required 6x the capital] Yeah, thank you, Thank you. . .look you’re trying to, you’re trying to be part of the industrial revolution. I don’t think that this is the railroads where Jay Gould wins because he was the dirtiest player. This is not that. What it is is a couple of companies that want to dominate and keep others out of the vertical. I think that’s, look, in 2000, who came out, who came out, Amazon, Google wasn’t public, that was it. . .I do think that you have to say, you don’t want to be a loser in this. . .”
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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
[/im-yf-promo]
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 this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center