Amazon (AMZN) Stock: Still Undervalued Before the AI Arms Race Heats Up

Wall Street’s sleeping on Amazon’s cloud dominance—again. While analysts obsess over retail margins, AWS quietly hoards the infrastructure powering the next decade of AI.

The Hidden Lever:
AWS revenue grew 17% last quarter—faster than Microsoft’s Azure. Yet AMZN trades at a discount to tech peers. Why? Short-termism. Retail volatility overshadows the profit engine humming beneath.

Cynical Take:
Fund managers chasing ’hot’ AI startups will soon realize—you can’t run LLMs without Amazon’s servers. By then, the bargain window slams shut.

Amazon Has One Key Facet That Will Help It Soar, and Why It’s Wall Street’s Best Bet

Late last week, it was revealed that Jeff Bezos is planning to sell $4.8 billion worth of Amazon shares. The move echoes a sentiment of concern for some of the biggest companies in the world as Wall Street continues to be hammered by macroeconomic worries and looming trade wars.

However, there are some mega-cap stocks that have immense potential to turn things around. Indeed, Amazon may just be at the top of that list, as there is one reason why it’s the best bargain buy on the stock market. At least, it is for the time being, as the price is expected to turn upward in a major way.

Although an e-commerce titan, its retail and online shopping expertise is not what has drawn investors in recent years. Moreover, it will not be the reason why it eventually rebounds from its 2025 dip in magnificent fashion. The greatest draw that AMZN has as a company is the success of Amazon Web Services (AWS). Specifically, its position atop the thriving cloud computing sector should explode in the coming years.

Since 202, AWS has contributed 10% of the company’s total revenue. However, that has only increased, reaching 15% currently. Moreover, its operational profits and high-end potential make it among the most important facets of big company investing.

AWS has contributed more than half of the company’s total operating profits. While it doesn’t compare in terms of company sales, its impact on its bottom line makes it invaluable. Additionally, Amazon’s cloud computing sector has a 30% global market share. This means that, as the industry grows, AWS is assured to dominate. Subsequently, as that happens, AMZN stock is guaranteed to benefit as the company’s profitability thrives.