My Top Artificial Intelligence (AI) Stock to Buy Today (Hint: It's Not Nvidia)

Core Viewpoint - The focus on Nvidia in the AI market may lead investors to overlook other opportunities, particularly Amazon, which is positioned to leverage AI across multiple business lines and is considered a strong investment in the AI sector [2][13]. Group 1: AI Implementation in Amazon - Amazon is deploying hundreds of thousands of robots in fulfillment centers, enhancing efficiency with generative AI technology [4]. - The advertising division of Amazon generates $56 billion in annual revenue, utilizing AI to improve sponsored listings and advertisements, which could lead to significant returns on investment [5]. - AI enhancements for consumers, such as the AI assistant Rufus, are expected to improve customer experience and increase spending on the e-commerce platform [6]. Group 2: Amazon Web Services (AWS) Growth - AWS is benefiting from the demand for AI software tools, with revenue growth of 19$107 billion in revenue last year [7]. - AWS maintains a high operating margin of 37%, contributing significantly to Amazon's overall operating income, with expectations for continued strong margins despite potential future declines [8]. Group 3: Financial Comparisons and Projections - Amazon's forward price-to-earnings (P/E) ratio is 32.4, compared to Nvidia's 26.6, suggesting that Amazon may offer better long-term value despite Nvidia's current edge [9]. - Amazon's operating margin was 10.75% in 2024, with potential to increase to nearly 20% as AWS grows and AI efficiencies are realized [11][12]. - Projected revenue growth for Amazon from $638 billion to$800 billion could result in annual earnings of $160 billion, compared to$68.6 billion in 2024 [12].