Amazon’s AI Ambitions Face Market Skepticism as Cloud Division Outshines E-Commerce

Amazon.com Inc. finds itself in an unusual position among tech giants this year. While Microsoft, Meta, and Nvidia ride the AI wave to market dominance—collectively driving most of the S&P 500's gains—the Seattle-based behemoth struggles to convince investors of its artificial intelligence credentials. Janus Henderson portfolio manager Brian Recht observes, "The market isn't pricing in Amazon's AI potential yet. Proof points in profitability will be key."

The company's sprawling business mix tells a tale of two Amazons. AWS continues to attract bullish forecasts as enterprises scramble for cloud capacity to train AI models. Yet the Core e-commerce operation, still the revenue workhorse, grapples with tariff pressures and investor indifference. Analysts suggest Amazon's advertising arm could become an unexpected AI beneficiary through improved targeting algorithms—if execution matches ambition.