1 Overlooked Artificial Intelligence (AI) Stock That Could Generate Life-Changing Returns

Group 1: AI Market Overview - The AI market was valued at approximately $190 billion in 2023 and is projected to reach nearly $5 trillion by 2033 according to the United Nations [1] - The rise of AI is expected to create significant investment opportunities, prompting investors to seek the next major AI stock [1] Group 2: Amazon's Position in AI - Amazon is primarily recognized as an e-commerce business, but a significant portion of its operating profits comes from Amazon Web Services (AWS) [2][3] - AWS revenue increased by 17% year over year, while North American e-commerce sales rose by only 8% and international sales by 5% [3] - AWS generated operating profits of $11.5 billion last quarter, with operating margins around 39.5%, highlighting its critical role in Amazon's profitability [3] Group 3: Drivers of AWS Growth - The rapid growth and profitability of AWS are largely driven by the increasing demand for artificial intelligence services [4] - AI companies typically rely on cloud infrastructure providers like AWS for their operations, contributing to AWS's market share of approximately 30%, which is nearly equal to the combined share of its next two competitors [5] Group 4: Investment Appeal of Amazon - Investing in Amazon is appealing due to AWS's established scale and investment power in the cloud-computing sector [7] - Analysts suggest that AWS is undervalued relative to Amazon's e-commerce division, with AI being a key driver of AWS's growth potential [8] - Regardless of potential spin-off discussions, AWS is expected to play an increasingly significant role in Amazon's overall business strategy, enhancing the company's stock valuation [9]