We recently compiled a list of the 15 AI Stocks That Are Dominating Headlines. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against the other AI stocks that are dominating headlines.
AI stocks are soaring and AI startups are receiving billions in funding from venture capital firms as the new technology sweeps investors off their feet. However, as the AI boom plays out, the central bank in Europe has issued a dire warning about the development of an AI bubble. The warning was included in the biannual Financial Stability Review, a report that lists the risks that could threaten the financial well being of world markets. In the review, the European Central Bank noted that the stock market, particularly in the United States, had become increasingly dependent on a handful of companies perceived as the beneficiaries of the AI boom.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Per the ECB, this concentration among a few large firms raises concerns over the possibility of an AI-related asset price bubble. It added that in a context of deeply integrated global equity markets, it points to the risk of adverse global spillovers, should earnings expectations for these firms be disappointing. The ECB further underlined that investors were demanding a low premium to own shares and bonds while funds had cut their cash buffers. Given relatively low liquid asset holdings and significant liquidity mismatches in some types of open-ended investment funds, cash shortages could result in forced asset sales that could amplify downward asset price adjustments, the ECB said.
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) operates as a technology conglomerate with core interests in the ecommerce business. On November 20, the company announced that it would be launching Rufus, an AI-powered shopping assistant, in beta to a subset of customers on the Amazon mobile app in India. The AI-powered assistant would then be rolled out to customers across the South Asian country in the coming weeks. Per the tech giant, more than 10 million people have used Rufus in India since the beta launch on the web store in August.