Key Points
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In January 2023, Amazon (NASDAQ: AMZN) was the most held stock by hedge fund managers, according to the Hazeltree Crowdedness report, which tracks over 600 hedge funds.
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Amazon had a crowdedness score of 99, with Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA) following at scores of 82 and 80, respectively.
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Despite concerns over a $200 billion capital expenditure plan and a nearly 20% decline from October highs, 92% of Wall Street analysts rated Amazon as a buy, with a median price target of $285 per share, indicating a potential 39% return over the next 12 months.
The Hazeltree report indicates a significant interest in Amazon among institutional investors, reflecting a strategy to capitalize on potential recovery from recent tech sell-offs. Hedge funds appear optimistic about Amazon’s increased spending on AI infrastructure to maintain competitive advantages, despite the stock’s year-to-date decline of about $11.
As Amazon leads hedge fund holdings in January, Microsoft and Nvidia are also garnering attention for their valuations, with strong buy ratings from analysts. The investment community remains bullish on the tech sector, especially on these three stocks.
