Amazon is set to grow its earnings by 82% in 2024 and 20% in 2025, reaching $6.32 per share. The company anticipates an 11% sales increase, targeting $706.50 billion by 2025, adding $130 billion compared to FY23.
To drive its AI expansion, Amazon plans to invest over $100 billion in data centers and related efforts over the next decade. Recently, the company announced a $4 billion investment in AI company Anthropic, doubling its prior commitment.
Amazon aims to enhance its Claude AI assistant through this investment, positioning itself against competitors like ChatGPT. Additionally, the company has introduced an 'Ultracluster' AI supercomputer, utilizing hundreds of thousands of its Trainium chips, designed for high-performance AI training.
Amazon's Trainium2-based EC2 instances are reported to deliver four times the performance at 50% lower training costs than comparable options. Over the past two decades, Amazon's stock has surged approximately 10,000%, significantly outperforming the tech sector.
Despite recent volatility, Amazon's stock has increased 20% in the past three months, reaching new all-time highs. Currently, Amazon trades at over 90% below its peak valuation, presenting a potential investment opportunity as it integrates AI across its operations.