Few stocks have seen a staggering 230, 000% increase since their IPOs without dividends in under 30 years. Those that have are typically global giants transitioning into value stocks and initiating dividends. Amazon (AMZN -1. 09%) is notable for achieving this massive gain while still having significant growth potential, especially following the rise of artificial intelligence (AI) two years ago. The company has developed a powerful AI platform, serving as a significant growth driver. Generative AI is transforming business operations and is expected to expand from billions to trillions in revenue. This burgeoning market includes services like Nvidia's hardware and AI solutions from companies like Amazon. Far from being a fleeting trend, generative AI is creating immense value by saving companies time and money, with market projections showing a tenfold increase by 2030, growing at a 46. 5% compound annual rate. Amazon's AI business is already generating substantial revenue. CEO Andy Jassy believes the AI-driven transition to the cloud is just beginning.

Amazon uses its size, reach, and budget to offer AI solutions through Amazon Web Services (AWS), the leading cloud computing platform. AWS leverages its client network to expand its AI business, offering three tiers of services: custom large language models (LLMs) for big clients, semi-customized generative AI models, and ready-to-use solutions for smaller enterprises. Amazon Bedrock, highlighted by McKinsey, plays a crucial role by connecting AWS client databases with Amazon and other LLMs. To further enhance its offerings, Amazon provides services like video creation for third-party sellers and is developing its own graphics processing units (GPUs), aiming for more customization. Despite a 50% drop in stock value in 2022, Amazon has since rebounded by 166%. E-commerce, advertising, and AWS are contributing to its current growth, with AWS being particularly profitable, accounting for 62% of operating income despite only making up 17% of total sales. Generative AI continues to be a potent growth catalyst for Amazon, promising substantial long-term benefits for the company and its shareholders, with 2025 poised to be another strong year.