Amazon (NASDAQ: AMZN) is one of the strongest overall players in artificial intelligence (AI), and the AI revolution has played a huge role in powering the overall stock market’s gains over the last half-decade.
The company has recently surged higher thanks to AI-related developments, and its share price is up roughly 28% over the last three months
On the other hand, the tech giant has actually significantly underperformed the broader market over the last five years. While the S&P 500’s level has risen roughly 78% over the stretch and delivered a dividend-adjusted total return of 91%, Amazon stock has climbed only 64% over the same period. Even though some solid growth is already priced into the company’s valuation, there are good reasons to think the market is significantly underestimating Amazon’s opportunities in artificial intelligence.
With that in mind, read on for a look at three ways Amazon has to win with AI over the next decade and beyond. 1. AI chips Amazon has been working on its own custom AI semiconductor designs for years, and there are clear signs that the company’s big bet on custom semiconductors is on track to yield a powerful new growth driver for the tech giant. In April, Meta Platforms announced that it had entered into a partnership to secure access to millions of Amazon’s Graviton5 cores.