Buy Amazon stock for long-term AI investment potential

Many young investors, especially those from Generation Z, may want to consider buying Amazon stock. Experts believe that Amazon is well-positioned to benefit from the growth of artificial intelligence (AI) in the coming years. AI is gaining traction in the real world, with tools such as virtual agents and self-driving vehicles becoming more common. A recent study showed that AI usage in the United States is low at 6.8%, but this number is expected to rise. For Gen Z investors, this presents a chance to build wealth over the long term if they invest wisely. Amazon is already a major player in cloud computing through its Amazon Web Services (AWS). This service holds about 30% of the global market. It is a critical profit center for the company, as many businesses are shifting to cloud-based operations. Analysts predict that AI will significantly increase the revenue of cloud services, potentially reaching $2 trillion by 2030. If Amazon retains its market share, it could see its revenues grow immensely. In addition to cloud computing, Amazon’s e-commerce business is also thriving. It commands a 40% share of online shopping in the United States. While the company operates on thin profit margins, AI is expected to improve these margins by automating tasks such as delivery and customer service. Amazon has already started using AI in these areas and is likely to continue investing in these technologies. Despite recent stock market fluctuations, Amazon remains a strong investment. Currently, its stock price is about 20% lower than its peak, but analysts expect earnings to grow by 21% over the long term. The stock also has a favorable price-to-earnings ratio, making it an attractive option for those looking to invest for the future. Overall, Amazon’s potential in cloud computing, e-commerce, and AI makes it an appealing choice for investors looking to hold onto their stocks for decades.