2 AI Stocks Shaping the Future of Technology to Buy Now, According to Wall Street

Source Domain: www.fool.com

Amazon (AMZN +0.20%) and Robinhood Markets (HOOD +2.93%) are leaning on artificial intelligence (AI) to shape the future of technology within their industries. And most Wall Street analysts think the stocks are undervalued:

Among 72 analysts, Amazon has a median target price of $285 per share. That implies 34% upside from the current share price of $212.
Among 28 analysts, Robinhood has a median target price of $121 per share. That implies 59% upside from the current share price of $76.

Here’s what investors should know about these AI stocks.

Image source: Getty Images.

Amazon: Automating fulfillment and last-mile delivery with robots and robotaxis

Amazon is the largest operator of industrial mobile robots, and it has deep expertise in artificial intelligence (AI). The company is blending those proficiencies to shape the future of fulfillment and last-mile delivery with physical AI. Morgan Stanley ranks Amazon as one of the companies best positioned to “deliver material financial return from physical AI and robotics.”

Amazon last year introduced DeepFleet, an AI model that lets robots navigate warehouses more quickly. A press release said, “This AI technology will coordinate movement of robots across our fulfillment network, improving the travel time of our robotic fleet by 10% and enabling us to deliver packages to customers faster and at lower costs.” The company is also developing a generative AI framework that will let workers instruct robots in natural language.

Meanwhile, Amazon is developing humanoid robots to help human drivers with package delivery, according to The Information. The robots will initially carry packages from delivery vans to doorsteps while human drivers wait in the vehicles. However, the entire delivery process could eventually be automated because Amazon is also testing robotaxis through its autonomous driving subsidiary Zoox.

On that note, while investors generally associate Amazon with e-commerce, digital advertising, and cloud…

Source