My Top Artificial Intelligence (AI) Stock to Buy in 2025 and Hold Forever

Core Viewpoint - The artificial intelligence (AI) market is rapidly growing, with Amazon identified as a top stock to buy and hold due to its diversified business model and strong growth potential in various segments [1][12]. Group 1: Business Diversification - Amazon's business is significantly diversified beyond AI, allowing it to perform well even during economic downturns [3]. - The company is a leading grocery chain and holds the top share in the U.S. e-commerce market, recognized as the cheapest online retailer for eight consecutive years [4]. - Amazon's customer-centric perks, such as one-day shipping and easy returns, contribute to its resilience compared to peers [5]. Group 2: Cloud Computing and AI Integration - Amazon Web Services (AWS) is a major growth driver, with a $117 billion annual run rate, and has significant room for growth as over 85% of global IT spending remains on-premises [6]. - The company has over 1,000 AI applications across its business, including in its virtual assistant Alexa Plus and advertising [7]. - AI initiatives are expected to enhance customer service and operational efficiency [8]. Group 3: Advertising and Growth Opportunities - Amazon's advertising unit generated $13.9 billion in revenue in the first quarter, growing 18% year over year, outpacing AWS [10]. - The digital advertising market presents substantial growth potential, with higher margins compared to legacy e-commerce services [10]. - Amazon's advertising and AWS segments are expected to drive stronger profits and margins as they capture a larger share of the company's revenue [10]. Group 4: Ecosystem and Market Position - Amazon has a vast ecosystem with approximately 200 million Prime members, allowing for a range of services and subscriptions [11]. - The success of Amazon Pharmacy illustrates the company's ability to disrupt established markets and offer savings to customers [11]. - With multiple growth avenues, including AI, AWS, and advertising, Amazon is positioned for superior long-term returns [12].