Amazon.com (AMZN) Leverages Traditional AI: AWS Poised for Growth in Cloud AI Market - InvestingChannel

Amazon.com (AMZN) Leverages Traditional AI: AWS Poised for Growth in Cloud AI Market

We recently published a list of 15 AI News and Ratings You Should Not Miss. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against other AI news and ratings you should not miss.

AI technology has forced businesses worldwide to reconsider their money making models. This revolutionary change is now making its way into the government sector as well. According to a report from news agency Reuters, Mothibi Ramusi, the chief of the communications regulator in South Africa, recently said that the information and communications technology sector needs policy and regulatory changes to keep up with emerging technologies. The country is also debating new regulations for mobile virtual networks and spectrum sharing. The regulator has initiated an inquiry into the licensing framework for satellite-internet providers to provide clear rules for potential operators in the country.

Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.

In Japan, multinational conglomerate Softbank has partnered with chipmaker NVIDIA in a partnership that aims to turn communication base stations from cost centers into AI revenue-producing assets. The latter claims that traditional telco networks are built to handle peak loads and usually use only about one-third of their capacity. With AI-RAN, a new communications tech, they can expect to monetize the remaining two-thirds of the capacity for AI inference services. Softbank estimates a return of up to 219% for every AI-RAN server it adds to its infrastructure.

READ ALSO: 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.

For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Amazon.com (AMZN) Leverages Traditional AI: AWS Poised for Growth in Cloud AI Market A customer entering an internet retail store, illustrating the convenience of online shopping.

Amazon.com, Inc. (NASDAQ:AMZN)

Market Capitalization: $2.1 Trillion  

Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. IoT Analytics, a market research firm, recently released a report quantifying the success of hyperscalers in integrating AI use cases into their cloud offerings. The report claims that AWS has found success with traditional AI case studies, which excludes genAI. The cloud giant led just 15% of total new AI case studies tracked by IoT Analytics, but 85% of those case studies were not based on genAI. IoT Analytics Senior Analyst Dimitris Paraskevopoulos wrote that as AWS further develops its cloud AI offerings, especially genAI, it could start upselling these services to its current and new customer base, see more cloud AI projects, and gain a larger share of new projects.

Overall, AMZN ranks 4th on our list of AI news and ratings you should not miss. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article is originally published at Insider Monkey.

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