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Better AI Stock to Buy Today: Dell Technologies vs. Amazon

Eli GrantSunday, Nov 17, 2024 7:12 am ET
4min read
In the rapidly evolving landscape of artificial intelligence (AI), investors are increasingly seeking opportunities to capitalize on the growth of this transformative technology. Two prominent players in the AI space, Dell Technologies and Amazon, have emerged as strong contenders in the race to deliver cutting-edge AI solutions. This article compares the AI offerings and growth potential of these two tech giants, helping investors make an informed decision on which AI stock to buy today.

**Dell Technologies: A Comprehensive AI Approach**

Dell Technologies' AI Factory, launched in 2024, offers a broad AI portfolio from device to data center to cloud, supported by an open ecosystem of technology partners. Key collaborations include Hugging Face for optimized on-premises deployment of generative AI models and Meta for simplifying deployment of Meta Llama 3 models on-premises. Dell's partnership with NVIDIA, announced in 2024, strengthens its AI capabilities, offering customers access to advanced AI infrastructure and software suite.

Dell's AI Factory with NVIDIA provides a fully integrated solution, leveraging rack-level design and rigorous testing for seamless data transformation. This end-to-end approach enables Dell to offer right-sized approaches and greater control over AI deployments on-premises, at the edge, and across cloud environments.

**Amazon: Cloud-based AI Solutions and Aggressive Development**

Amazon, on the other hand, emphasizes cloud-based AI solutions, with its Amazon Bedrock platform offering access to multiple LLMs as a service. Amazon's AI services, including Amazon Bedrock and Amazon SageMaker, provide a comprehensive platform for building, training, and deploying AI models. The company's recent investment in developing a more powerful AI model, code-named "Olympus," could make AWS much more attractive to customers.

Amazon's aggressive AI development and diverse business model may give it an edge as the better AI stock to buy today. The company's expansion into new markets, such as selling cars online and launching Supply Chain by Amazon, further bolsters its growth potential.



**Key Differentiators and Market Adoption**

Dell Technologies and Amazon both have strong AI offerings, but their strategies differ. Dell's AI Factory focuses on on-premises and edge deployments, while Amazon's cloud focus attracts customers seeking scalability and ease of use. Dell's partnership with NVIDIA and Hugging Face has contributed to its growing market acceptance in the AI space, while Amazon's aggressive AI development and diverse business model may give it an edge.

Ultimately, the choice between Dell and Amazon depends on whether customers prioritize on-premises control or cloud scalability for their AI needs. Both companies are expected to see substantial returns on their AI investments, with Dell's AI Factory potentially offering more immediate benefits due to its focus on infrastructure and performance improvements.

In conclusion, Dell Technologies and Amazon both offer compelling AI solutions, with Dell's AI Factory and Amazon's AI services leading the way. While Dell's AI Factory with NVIDIA provides a comprehensive, end-to-end solution for AI deployment, Amazon's cloud focus and aggressive AI development may give it an edge as the better AI stock to buy today. Investors should carefully evaluate their AI needs and market preferences when deciding which AI stock to buy.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.