Amazon’s continuous effort in AI development and investing is a positive contributor to its stock performance, and will likely push AMZN further. There is no shortage of reasons to be excited about the potential of the e-commerce juggernaut. Perhaps no company has better-embraced diversification in the ever-changing investment landscape than the firm. Within the ongoing AI revolution, Amazon has been a steady player. According to some experts, the company may be leading the AI charge, which may benefit its stock in the long run.
The company has AI and cloud-based businesses that could soon become catalysts for growth. Recently, CEO Andy Jassy said, “We have a number of very significant, I’ll call it, productivity and cost-saving efforts in our retail business that are using generative AI.” Moreover, Morgan Stanley states that that investment could only drive Amazon to increase its market share.
With AMZN dipping slightly, some stock experts are suggesting that now could be a good window to buy in. The company is expected to maintain solid stock performances in 2025 like it did last year. Thus, any period of flux can be seen as a chance to “buy the dip.” Additionally, this dip combined with the recent reassurance by CEO Andy Jassy of continued AI development is a good sign. AI and tech companies investing in software dominate Wall Street. That trend is expected to continue in the future.
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Amazon To “Another Level” Says Analyst
Gil Luria, DA Davidson’s head of technology research, says that Amazon (AMZN) has taken its retail business to “another level,” maintaining its Cloud business growth. “If you were to focus on the two key numbers here, AWS growing 19%, which is the same as last quarter, means Amazon.com Inc has regained the leadership in AI,” Luria said in a CNBC interview. “Both Microsoft Azure and Google Cloud decelerated in the quarter, in fact, significantly decelerated in Google’s case, while Amazon has been able to maintain the same growth while expanding margins.”
Amazon’s AWS engine and ongoing AI investments could reap benefits for the company’s stock and market capitalization. While a $3 trillion market cap is on the horizon, AMZN stock may also surge over the next few years. The company could easily surpass $100 billion in operating income within the next two years, pushing its stock to a new all-time high inevitably.
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Furthermore, beyond this year, stock brokers evaluation firm Traders Union has painted a bullish picture for Amazon stock in 2030. According to the prediction, AMZN could reach a high of $321 and its average price could be around the $311 mark. That’s an uptick and return on investment (ROI) of approximately 40% from its current price of $266.