The US stock market has seen demand for AI products only grow in recent years. Indeed, its rising prominence has benefitted companies perfectly positioned to diversify with the emerging trends. One such firm is Amazon (AMZN), as they are looking to create a new AI division with eyes on the stock continuing its 16% jump.
The year has not been kind to tech stocks so far, with Thursday seeing a shot of mega-cap companies plummeting in value. However, things are expected to turn around in the near term. When it does, the e-commerce giant could be ready to take full advantage.
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Amazon Introduces New AI Division as Stock Drops Below $200
Thursday saw Amazon and a host of other stocks drop significant value in their shares. Indeed, the company stock fell more than 4% as uncertainty and geopolitical tensions abound. However, that hasn’t stopped the continued investment in AI technology in the country.
A host of the biggest technology companies in the world announced a $1 trillion investment in the US this year. Moreover, one of those had taken things a step further. Indeed, Amazon (AMZN) announced the creation of a new AI division, with the stock eyeing a continuation of its 16% increase over the last six months.
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According to a new report, Amazon is looking to create a division focused on AI use cases that enhance automation for both users and businesses. Moreover, this new sect would be led by Amazon Web Services (AWS) executive Swami Sivasubramanian.
The automotive AI industry was described as a “multi-billion dollar business” by Amazon. Moreover, it could help them rebound when the market settles out. The stock currently has a $270 median price target from CNN, up 35% from its current position. Moreover, it has a high-end projection of $306, representing a 53% upside.