1 Artificial Intelligence (AI) Stock Gen Zers Should Buy Today and Hold for Decades

Core Insights - Artificial intelligence (AI) is poised to significantly enhance wealth generation for investors in leading companies over the coming years [1] - The adoption rate of AI in the U.S. is currently around 6.8% and is projected to increase to 9.3% in the next six months, indicating early investment opportunities in AI [2][3] Company Analysis: Amazon - Amazon is recognized as a top AI stock due to its leading cloud computing platform, Amazon Web Services (AWS), which holds approximately 30% of the global market share [5] - AWS is the largest profit center for Amazon, and analysts predict that AI will drive cloud revenue to $2 trillion by 2030, potentially yielding $600 billion for Amazon if it maintains its market share [6] - Amazon's e-commerce business commands a 40% share of online shopping in the U.S., significantly outpacing Walmart's 10.5% share [7] - The company has invested heavily in its e-commerce supply chain, resulting in a substantial increase in employee count [8] - AI has the potential to enhance profit margins in Amazon's retail segment by automating processes and reducing costs, as e-commerce continues to grow [9] Financial Metrics - Amazon's stock is currently about 20% below its recent high, despite strong earnings growth, which is expected to average 21% over the long term [10] - The stock trades at a price-to-earnings ratio of 34, with a price/earnings-to-growth (PEG) ratio of 1.7, indicating a favorable valuation for long-term investors [11] AI Applications - Amazon is exploring various AI applications, including self-driving vehicles, automated order fulfillment, and virtual customer service agents, which could further enhance operational efficiency [12]