1 Dirt Cheap Cathie Wood and Warren Buffett AI Stock to Buy Hand Over Fist Before the End of the Year

As the artificial intelligence (AI) revolution continues to gain momentum, investors are eager to capitalize on the growth opportunities it presents. Two prominent investors, Cathie Wood and Warren Buffett, have identified a compelling AI stock that offers an attractive entry point before the end of the year. This article explores the reasons why Amazon (AMZN) is a dirt-cheap AI stock that investors should consider buying hand over fist.

Amazon's diverse ecosystem and multiple revenue streams make it an attractive AI play for both Wood and Buffett. Wood, the CEO of Ark Invest, is known for her high-conviction bets on growth stocks and emerging technologies. She appreciates Amazon's AI integration across various segments, including its e-commerce marketplace, cloud computing platform (AWS), and advertising operation. Buffett, the CEO of Berkshire Hathaway, is drawn to Amazon's concrete fundamentals, such as cash flow, earnings power, and steady growth. He acknowledges the company's AI prowess and its potential to drive operating income.

Amazon's AI-driven growth is evident in its various segments. The company's e-commerce marketplace leverages AI for personalized recommendations, enhancing the shopping experience and driving sales. AWS, Amazon's cloud infrastructure service, is a significant driver of operating income and has been supercharged with AI. The emergence of generative AI capabilities and services has further boosted Amazon's AI potential.

Despite its AI prowess, Amazon's stock is currently trading at a discount. With a price-to-free-cash-flow (P/FCF) ratio of 57, significantly lower than its 10-year average of 81, Amazon is a bargain. This discount presents an attractive entry point for investors looking to capitalize on the company's AI-driven growth.

To further illustrate Amazon's AI integration and growth potential, consider the following visualization:



As the chart above demonstrates, Amazon's AI-driven growth is evident across its segments. The company's e-commerce marketplace, AWS, and advertising operation all benefit from AI integration, driving revenue and operating income.

In conclusion, Amazon is a dirt-cheap AI stock that offers an attractive entry point before the end of the year. Its diverse ecosystem, multiple revenue streams, and AI integration make it an appealing investment for both Cathie Wood and Warren Buffett. With a P/FCF ratio significantly lower than its 10-year average, Amazon is a bargain that investors should consider buying hand over fist. As the AI revolution continues to unfold, Amazon's AI-driven growth potential makes it an ideal stock to capitalize on this transformative technology.