3 Reasons Amazon Is 1 of the Best AI Stocks to Buy Right Now

Amazon (AMZN) has been making waves in the artificial intelligence (AI) landscape, positioning itself as a strong contender in the AI hardware market. With its strategic investments in AI infrastructure, such as data centers and custom chipware, Amazon is well on its way to capitalizing on the growing demand for AI talent and skills. Here are three reasons why Amazon is one of the best AI stocks to buy right now.

1. Investment in AI Infrastructure: Amazon is investing heavily in technology infrastructure to support its AI business. In 2023, the company expects to spend $75 billion in capital expenditures, with the majority going towards AI infrastructure. This investment is similar to AWS's early-stage growth, where Amazon also made significant investments in cloud infrastructure. By building its own data centers and designing custom chipware, Amazon can reduce its dependence on external suppliers like Nvidia, lower costs, and improve efficiency for its cloud services, particularly for AI workloads. For instance, Amazon's Trainium chips are designed to offer 30-40% lower costs than Nvidia GPUs (Source: Bloomberg).

2. AI Chip Development: Amazon is developing its own custom AI chips, such as Trainium 2 and Trainium 3, to reduce dependence on external suppliers like Nvidia. This strategy is similar to AWS's early days, where Amazon invested in proprietary hardware to optimize performance for its specific workloads. Amazon's AI chip development could help it lower costs for its AWS business and potentially build new revenue streams. By offering more affordable AI solutions, Amazon can attract a broader customer base and compete more effectively with other cloud providers and AI hardware manufacturers. For example, Amazon's Trainium chips are being used by companies like Databricks and Anthropic for cost savings and flexibility in their generative AI projects (Source: Bloomberg).

3. AI Talent Acquisition and Training: Amazon is committed to providing free AI skills training to 2 million people globally by 2025 through its AI Ready initiative. This includes new courses, scholarships, and collaborations with organizations like Udacity and Code.org. By investing in AI talent, Amazon can ensure a steady pipeline of expertise for its own operations and the broader industry. This focus on AI talent is reminiscent of AWS's early growth, where Amazon invested in building a strong team of cloud experts. Moreover, a study by AWS and Access Partnership found that 73% of employers prioritize hiring AI-skilled talent but struggle to meet their AI talent needs (AWS, 2023). By addressing this demand, Amazon can position itself as an attractive employer for AI professionals and foster a culture of innovation and collaboration among its AI workforce.


In conclusion, Amazon's investment in AI infrastructure, AI chip development, and AI talent acquisition and training positions the company to capitalize on the growing demand for AI talent and skills. By reducing dependence on external suppliers, offering affordable AI solutions, and fostering a strong AI workforce, Amazon is well-positioned to emerge as a major player in the AI hardware market. With its competitive pricing, technological leadership, and commitment to AI education, Amazon is one of the best AI stocks to buy right now.