March 30, 2024, 2:35 a.m.
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Brief news summary

Investors often focus on Nvidia as the global leader in AI chips. With soaring earnings and a remarkable 200% stock surge in the past year, Nvidia seems like a promising investment choice. However, Amazon should not be overlooked. As one of the "Magnificent Seven" tech giants, Amazon is strategically positioned to tap into the projected growth of the global retail e-commerce market. Besides dominating e-commerce, Amazon has improved its cost structure and efficiency, solidifying its industry leadership. With the use of AI technology, Amazon optimizes deliveries and enhances customer product searches. The company's cloud computing unit, AWS, offers a wide range of AI products and services, showcasing its commitment to AI advancements. Despite a higher forward earnings valuation than Nvidia, Amazon offers a comprehensive package that includes AI, e-commerce, and more, making it a top contender among the "Magnificent Seven."

Investors looking to benefit from the AI boom often turn to Nvidia, the global leader in AI chips, which has seen a surge in earnings. However, Nvidia is not the only company set to succeed in AI. Amazon, a member of the "Magnificent Seven, " is also investing in AI and offers exposure to another high-growth business. Amazon is well-positioned to benefit from the forecasted growth in the e-commerce market, with global retail e-commerce sales expected to surpass $8 trillion by 2027.

The company has made strategic changes to improve its cost structure and shorten delivery times, making it more competitive while maintaining profitability. In addition to its dominant e-commerce operations, Amazon's cloud computing business, Amazon Web Services (AWS), also drives profit. AWS offers a range of AI services and products, positioning Amazon to benefit from customers' AI projects. Investing in Amazon provides access to AI growth, the potential of the e-commerce business, and the stability of a well-diversified company. With a valuation at a slight premium compared to Nvidia, Amazon is an attractive investment option for those seeking a complete package of AI and more.


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