Amazon (AMZN) continues to showcase strong growth potential, especially through AWS, which is up 20.2% year-over-year in sales. Shares in AMZN stock hit a new all-time high earlier this week after the e-commerce giant’s Q3 earnings report beat forecasts. Further, AWS and AI giant OpenAI recently struck a multi-year deal worth billions, hyping AMZN investors even further. Despite all of that, AMZN is up just a modest 12% YTD, compared to other big tech that have seen their shares surge further.
The recent decline in AI stocks has raised questions about the sustainability of the sector, yet Amazon’s investments in AI continue to position it favorably. While 12% compared to other big tech like Nvidia and Microsoft is smaller, Amazon has seen steady growth this year on its stock price chart. Since April 2025’s US tariff scare, AMZN stock has been on a consistently green path.
Throughout the AI boom of 2025, Amazon has been a top investor, dedicating billions of dollars towards AI. Amazon raised its forecast for capital expenditures this year, saying it now expects to spend $125 billion in 2025, up from an earlier estimate of $118 billion. CFO Brian Olsavsky stated that the number is likely to increase in 2026, with a focus on AI. Furthermore, Wall Street praised AWS’s comeback, with analysts noting the earnings marked a potential turning point for Amazon. “There was definitely concern about AWS losing market share to Microsoft Azure and Google Cloud … But now AWS is aboard the train as well and they’re seeing a big revenue increase,” said Jed Ellerbroek, portfolio manager at Argent Capital.
Despite just a 12% increase YTD, AMZN stock is arguably one of the best value magnificent-seven stocks on the market, due to its consistent investments in the AI industry and ROI for those investments. Should the e-commerce giant continue to post solid revenue in the next few years, a $1,000 investment now could reap upwards of 50%-100% back in the future.