We recently published a list of 11 AI News and Ratings You Should Not Miss. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against other AI news and ratings you should not miss.
There has been a lot of buzz around AI startups in the past few years, with funding rounds fetching hundreds of millions of dollars and valuations climbing to record highs. For example, OpenAI, of ChatGPT-fame, has become the most valuable private company in the world with a value of over $150 billion in the past few weeks. No other tech startup in the history of the United States has ever been this valuable before a public offering. This valuation is a reflection of the boundless potential of AI. Latest reports, published by news agency Reuters, reveal that the startup is presently involved in talks with authorities in California, where it is based, over a change in business structure that will allow it to become a for-profit business.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
In 2015, OpenAI was founded as a non-profit AI research lab. The shift towards the for-profit tag is likely to make the company even more attractive to investors. OpenAI has many big tech names among investors, including giants like Microsoft. Reports suggest that since the first billion it invested in the startup back in 2019, the tech giant has invested another $12 billion in the AI firm, bringing total investments in the startup to around $13 billion. The extensive capital spending has led to concerns about threats to fat margins at the company and added pressure on profitability. Market intelligence firm Visible Alpha estimates that the tech giant’s capital spending for a single quarter now is more than its annual expenditure used to be until fiscal 2020.
READ ALSO: 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing 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).
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Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 308
Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. On November 6, Anthropic, an AI startup backed by tech giant Amazon, announced that it would make the Claude AI model it had developed available to defense agencies in the US through partnerships with Amazon Web Services and Palantir. Anthropic had already integrated Claude into the AWS and Palantir systems earlier this year. Kate Earle Jensen, a senior executive at Anthropic, has said that the company’s collaboration with Palantir and AWS will operationalize the use of Claude.
Overall, AMZN ranks 1st on our list of AI news and ratings you should not miss. 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 timeframe. 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.
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Disclosure: None. This article is originally published at Insider Monkey.