Amazon (AMZN +1.21%) usually isn’t the first company you think of when it comes to artificial intelligence (AI) stocks, but I think it should be. While most investors focus on Amazon’s commerce and delivery business, its cloud computing service, Amazon Web Services (AWS), should be getting the attention of AI-focused investors.
Amazon just posted another incredible quarter, and AWS was a big driver of its strong results. What AWS is reporting should convince investors that it should be a top AI option, and not just the afterthought it seems to be for some. The segment is starting to catch fire, and investors should get some exposure to Amazon’s stock to take advantage. Here’s why.
Image source: The Motley Fool.
Amazon’s custom chip service is booming
At first glance, you may wonder what the big deal is about AWS, since it accounted for only 21% of Amazon’s total sales in the first quarter. However, that’s not the important metric here. AWS has a far better operating margin than…
https://www.fool.com/investing/2026/05/02/amazon-just-proved-its-no-longer-an-ai-underdog/
