10 Reasons to Buy and Hold This Artificial Intelligence (AI) Stock Forever

Core Viewpoint - The article emphasizes the strong growth potential of Amazon, highlighting its diverse business segments beyond artificial intelligence (AI), which positions it well for long-term success. E-commerce Growth - E-commerce continues to expand, with U.S. retail sales increasing by 3.2% in Q1 2025, while e-commerce sales grew by 5.6%, reaching 15.9% of total retail sales [4] - Amazon holds a dominant position in U.S. e-commerce, accounting for approximately 40% of the market, creating a self-reinforcing moat as loyal customers increasingly rely on its services [5] Cloud Services - The cloud services sector is growing at a compound annual growth rate (CAGR) of 20.4% through 2030, with Amazon Web Services (AWS) being a key player [8] - AWS holds a 30% share of the global cloud market, compared to 21% for both Microsoft Azure and Google Cloud [9] Streaming Services - Streaming has overtaken cable and broadcast TV, accounting for 44.8% of viewing hours as of May, according to Nielsen data [10] - Amazon is a significant player in streaming through Prime Video and owns Amazon Studios and MGM Studios, offering both premium and ad-supported tiers [11] Advertising Business - Amazon's advertising segment is its fastest-growing area, with an 18% year-over-year increase in Q1 2025, benefiting from high margins and long-term growth opportunities [12] Healthcare Initiatives - Amazon's acquisition of One Medical in 2023 and its expansion of Amazon Pharmacy services indicate its commitment to growing in the healthcare sector [13] New Business Ventures - The company is exploring new ventures, including AI and Project Kuiper, a broadband satellite initiative, with plans to launch services in the latter half of the year [14] Profitability - Amazon's operating income rose by 20% year-over-year in Q1 2025, with operating margins reaching 11.8%, driven by high-growth services like AWS and advertising [15] AI Opportunities - AI is identified as a multibillion-dollar business for Amazon, with CEO Andy Jassy envisioning it as a trillion-dollar opportunity integrated into future applications, primarily through AWS [16]