From Retail Darling to AI Powerhouse, This $2.4 trillion Growth Stock Is a Great Buy

Core Insights - Amazon is transitioning from a retail giant to a significant player in artificial intelligence (AI), which could drive its next phase of trillion-dollar growth [1] - The company has a market capitalization of approximately $2.4 trillion, indicating its status as one of the world's most valuable companies [1] AWS and AI Growth Engine - Amazon Web Services (AWS) is crucial for Amazon's future, generating a 17.5% year-over-year revenue increase in Q2 to $30.9 billion, with an annualized run rate of $123 billion [3] - AWS is becoming a leader in generative AI, with a business valued in billions and experiencing triple-digit growth annually [3] - Amazon's AI infrastructure, utilizing Trainium 2 custom chips and Nvidia Grace Blackwell Superchip EC2 instances, is attracting major clients like Anthropic [3] - Amazon Bedrock, which allows enterprises to customize models, is also gaining significant traction [3] Advanced AI Applications - Amazon is addressing complex AI challenges with tools like Strands and Agent Core for creating AI agents [4] - AWS is launching advanced AI applications such as AWS Transform for IT transformation and Curo, a next-generation coding agent [4] - AWS holds a dominant 30% share of the global cloud computing market, leading over competitors like Microsoft Azure and Google Cloud [4] Broader AI Initiatives - Amazon's AI strategy extends beyond AWS, with Alexa Plus, its generative AI assistant, receiving positive early feedback from millions of users in the U.S. [5] - The Project Kuiper satellite broadband program has successfully completed three launches, with commercial deployment anticipated for industry and government clients [5]