AI still offers enormous opportunities.
Is it too late to invest in the artificial intelligence (AI) revolution? According to the companies at the top, it’s just getting started and has a long runway.
There are many ways to invest in AI today. If you’re looking for a great AI stock to hold for the next five years (and longer), Amazon (AMZN 2.14%) is an excellent choice.
An Amazon drone. Image source: Amazon.
AI plus more
Amazon may be known more for its e-commerce business than anything else, but its AI business is booming, investing hundreds of millions of dollars into developing the most competitive platform. Management said it would spend more in 2026 than the roughly $125 billion it spends in 2025.
The AI business is part of Amazon Web Services (AWS) cloud computing, and Amazon has a dominant position in the global cloud space, giving it an edge. It claims to have the largest range of AI tools, and it’s adding more all the time. It also has a minority stake in generative AI company Anthropic, maker of the Claude Large Language Model (LLM), which gives it exposure to AI in a number of ways. It just launched Project Rainier, which it calls a “massive AI computing cluster” with nearly 500,000 chips to power Claude models.
Today’s change
(-2.14%)$-5.32
Current price
$243.78
Key data points
Market capitalization
$2663 billion
Day range
$243.76 -$250.37
Range of 52 weeks
$161.38 -$258.60
Volume
1.3 million
Avg. full
46M
Gross margin
50.05%
Dividend yield
N/A
AWS revenue growth accelerated to 20% in the third quarter as more customers came on board and launched more AI tools. It must remain a leader, if not the absolute leader, in the sector.
What I like about Amazon as a long-term AI investment is that AI isn’t the only game, and while AI will likely lead the company for many years to come, it has a large and varied business.
Jennifer Saibil has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
