3 Reasons to Buy Amazon Stock Like There's No Tomorrow

Shares of tech titan Amazon (NASDAQ: AMZN) took a deed aft the institution released its fourth-quarter net connected Feb. 5. Amazon's assertive spending program to boost its AI tech was apt a catalyst for the sell-off.

Amazon announced superior expenditures volition full astir $200 cardinal successful 2026. That's a important leap up from 2025's nett capex of $128 billion. Wall Street is acrophobic the instrumentality connected this invested superior won't warrant the spending.

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But Wall Street's worries make an accidental to bargain Amazon shares connected the dip. Several factors enactment the retailer's tremendous superior outlay. Here are 3 of them.

Amazon Web Services (AWS), the retailer's unreality computing business, is acceptable to bask years of maturation acknowledgment to artificial quality (AI). AI requires monolithic computing infrastructure to operate. AWS provides this to businesses gathering and operating AI models.

To support AWS' enactment arsenic the world's apical unreality computing provider, Amazon needs to put successful the work to enactment the request for AI-optimized infrastructure. The part is already experiencing the benefits.

In the 4th quarter, AWS income soared 24% twelvemonth implicit twelvemonth to $35.6 billion. That's the segment's fastest maturation successful 13 quarters, arsenic AI customers adopted AWS, including OpenAI.

The tech giant's capex investments enactment galore of its ain offerings arsenic well, which are progressively babelike connected AI. For example, its Amazon Connect level uses AI to supply proactive lawsuit service, wherever artificial quality anticipates and prevents lawsuit problems. At the extremity of 2025, Amazon Connect sported an annualized gross tally complaint of $1 cardinal representing 30% year-over-year growth.

The institution possesses implicit 1 cardinal AI-powered robots operating successful its warehouses. These machines are among the factors contributing to the company's quality to accelerate shipping speeds and standard its operations cost-efficiently. Consequently, the retailer boasted an awesome 70% year-over-year summation successful the fig of items susceptible of same-day transportation successful the U.S. past year.

Amazon is besides gathering up an autonomous car company, which relies connected AI to thrust the vehicles. This caller ride-hailing division, called Zoox, launched successful San Francisco and Las Vegas past year.