Exploring Amazon.com Inc (NASDAQ:AMZN) as the Best AI Value Stock According to NYU’s Aswath Damodaran
Are you looking to invest in AI value stocks that are considered “money machines” by NYU’s Aswath Damodaran? If so, you’ll want to take a closer look at Amazon.com Inc (NASDAQ:AMZN), which ranks 1st on the list of the 7 best AI value stocks.
Aswath Damodaran, a Professor of Finance at NYU, recently highlighted the Magnificent Seven stocks as the “value stocks for investors who care about earnings and cash flows.” These stocks have added a staggering $8.8 trillion in market cap over the last year and a half, surpassing the market caps of entire countries like Germany and France.
While Damodaran has previously expressed concerns about the valuation of major tech companies, he now emphasizes that these seven stocks are the “money machines” of the market. Amazon.com Inc (NASDAQ:AMZN) is one of these money machines, with a strong position in the AI value chain.
With 302 hedge fund investors backing Amazon.com Inc (NASDAQ:AMZN), it’s clear that this stock is a favorite among institutional investors. The company’s AI-related growth catalysts, such as its machine learning chip Trainium and AI accelerator Inferentia, position it well to capitalize on the $1.16 trillion AI opportunity.
Amazon Web Services (AWS) is another key factor driving Amazon.com Inc’s success in the AI space, with operating margins exceeding 37% in the first quarter. The company’s revenue and earnings have been on a steady upward trajectory, with strong performance in North America, International segments, and digital ads.
While Amazon.com Inc (NASDAQ:AMZN) is a top pick on many investors’ lists, there are other AI stocks that may offer even greater potential for higher returns. If you’re interested in exploring AI stocks with significant upside potential, consider checking out our report on the cheapest AI stock poised for massive gains.
In conclusion, Amazon.com Inc (NASDAQ:AMZN) is a standout player in the AI value stock market, backed by strong financial performance and a solid position in the AI value chain. Whether you choose to invest in Amazon or explore other AI opportunities, it’s clear that the AI sector holds significant promise for investors seeking high returns in a shorter timeframe.