There is no denying that the AI sector has been thriving over the last year. With so much competition, a race to the top of the industry has been underway as some of the biggest companies in the world jockey for position. That has led some to question whether Amazon (AMZN) is already a top 5 AI stock.

One of the most prominent advisory firms, Bourgeon Capital, has issued a strong opinion on that very question. The firm has a portfolio valued at more than $535 million and advises with a focus on limiting risks and managing long-term growth. So, what do they think about Amazon as an AI stock?

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Source: TheHill / AP Photo/Seth Wenig, File

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Amazon May Be Top AI Stock: What Does Bourgeon Capital Think?

There is no shortage of reasons to be excited about the future of AI. Over the last two years, a host of companies have invested heavily in its development. Now, Wall Street is seeking to reward the businesses that best utilize and develop its vast capabilities. That has created some interesting competition among the largest companies on the planet.

With companies like Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT) all vying for the top spot, one has emerged as a key competitor. Indeed, Amazon (AMZN) may have already developed into a top 5 AI stock, according to Bourgeon Captial. Its efforts to diversify have paid off big as the e-commerce juggernaut has flourished over the last year.

Amazon AMZN
Source: Reuters

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With 338 total hedge fund holders of the stock, Bourgeon Capital has a $15 million equity stake in the company. Moreover, its belief in the AI stock is rooted in its $158 billion revenue in Q3, up 11% year over year. Additionally, its earnings per share exceeded forecasts by 25%, reaching $1.86.

There are big things expected for the stock this year. According to CNN data, AMZN has a median target of $270, up 26% from its current position. Additionally, they have a high-end price projection of $306, representing a 43% upside over the next year.

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