A Once-in-a-Decade Investment Opportunity: My Pick for the Best AI Stock to Buy Now

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Trevor Jennewine, The Motley Fool

Mon, Mar 17, 2025, 1:07 AM 5 min read

Andy Jassy, CEO of Amazon (NASDAQ: AMZN), successful a caller shareholder missive wrote, "Generative AI whitethorn beryllium the largest exertion translation since the unreality (which itself is inactive successful the aboriginal stages), and possibly since the internet." That puts investors successful beforehand of a uncommon opportunity.

Evercore and Morgan Stanley precocious selected Amazon arsenic a apical prime owed successful portion to its beardown positioning successful artificial intelligence. Specifically, Mark Mahaney astatine Evercore says unreality gross maturation could accelerate arsenic Amazon monetizes AI, and Brian Nowak astatine Morgan Stanley sees the institution arsenic an underappreciated person successful AI crossed unreality and retail.

Amazon banal has fallen 18% from the grounds precocious it reached successful February. Admittedly, the marketplace situation is presently analyzable by commercialized tensions and worrisome economical data, which means the banal whitethorn not retrieve anytime soon. But I judge the existent stock terms volition look similar a bargain successful 3 to 5 years.

Here's wherefore Amazon is my prime for the champion AI banal to bargain now.

A bull figurine lasting successful beforehand of banal terms charts.

Amazon has a beardown presumption successful 3 markets. It runs the largest e-commerce marketplace extracurricular China, supported by a logistics web that handles much measurement than FedEx and UPS. It is the 3rd largest ad tech company, and its U.S. marketplace stock whitethorn transcend that of Meta Platforms by 2030, according to eMarketer. And Amazon Web Services (AWS) is the starring nationalist unreality arsenic measured by customers and revenue.

Amazon is bringing artificial quality (AI) to carnivore crossed each 3 segments to make much gross and amended efficiency. In fact, Jassy precocious told analysts the institution has built oregon is successful the process of gathering 1,000 antithetic generative AI applications for antithetic purposes.

E-commerce: Amazon uses generative AI to forecast request and optimize inventory crossed fulfillment centers. It has added earthy connection processing to the instrumentality imaginativeness robots that benignant products successful warehouses. And the institution leans connected AI to optimize last-mile transportation routes, assistance sellers successful listing items, supply prime lawsuit service, and urge products connected the marketplace.
Advertising: Amazon offers generative AI tools that assistance brands make outgo businesslike advertizing contented crossed antithetic media types, including audio, image, and video. In addition, its advertisement tech bundle leans connected AI to helps brands people advertizing contented and optimize run performance.
Cloud computing: AWS has designed customized chips called Trainium and Inferentia that supply cheaper alternatives to Nvidia GPUs for AI grooming and AI inference. The institution has besides introduced Bedrock, a work that lets developers fine-tune models and physique generative AI applications. Finally, Amazon Q is simply a conversational adjunct that helps cognition workers and programmers enactment much productively.