This 1 Top Tech Stock Offers Investors 3 Big Ways to Win With Artificial Intelligence (AI)

2 weeks ago 8

Keith Noonan, The Motley Fool

Thu, May 28, 2026 astatine 10:05 AM CDT 4 min read

Amazon (NASDAQ: AMZN) is 1 of the strongest wide players successful artificial quality (AI), and the AI gyration has played a immense relation successful powering the wide banal market's gains implicit the past half-decade. The institution has precocious surged higher acknowledgment to AI-related developments, and its stock terms is up astir 28% implicit the past 3 months. On the different hand, the tech elephantine has really importantly underperformed the broader marketplace implicit the past 5 years.

While the S&P 500's level has risen astir 78% implicit the agelong and delivered a dividend-adjusted full instrumentality of 91%, Amazon banal has climbed lone 64% implicit the aforesaid period. Even though immoderate coagulated maturation is already priced into the company's valuation, determination are bully reasons to deliberation the marketplace is importantly underestimating Amazon's opportunities successful artificial intelligence.

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With that successful mind, work connected for a look astatine 3 ways Amazon has to triumph with AI implicit the adjacent decennary and beyond.

1. AI chips

Amazon has been moving connected its ain customized AI semiconductor designs for years, and determination are wide signs that the company's large stake connected customized semiconductors is connected way to output a almighty caller maturation operator for the tech giant. In April, Meta Platforms announced that it had entered into a concern to unafraid entree to millions of Amazon's Graviton5 cores.

Meta's determination to heavy usage Amazon's Graviton5 processors is peculiarly notable, fixed that the societal media elephantine has besides been pursuing its ain customized spot development. The concern looks similar a immense triumph for Amazon's spot plan concern and paints a promising representation for the future. In summation to inviting further income opportunities with third-party customers, the spot of Amazon's customized chips bodes good for its interior tech stack.

2. Cloud infrastructure services

While Microsoft and Alphabet person gained important marketplace stock successful the unreality infrastructure services market, Amazon Web Services (AWS) remains the wide manufacture leader. Revenue for Amazon's unreality conception accrued 28% twelvemonth implicit twelvemonth to $37.59 cardinal successful the archetypal quarter, beating the mean Wall Street expert estimation of $36.64 billion.

The maturation complaint for the conception came successful astatine its highest level successful 3 years -- a beardown denotation that AI-related request is powering accrued utilization crossed the AWS network. With much AI applications being developed, launched, and scaled, Amazon is poised to beryllium a winner.

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