Is Amazon Stock a Long-Term Buy?
After being a market laggard much of the past year, Amazon's (NASDAQ: AMZN) stock has started to get its mojo back, helped by reporting strong third-quarter results and announcing a deal with OpenAI. However, with what the company has been building behind the scenes, this could just be the start of its breakout.
Amazon pioneered cloud computing, and today it remains the market share leader. With its large size, though, Amazon Web Services (AWS) has been growing more slowly than its peers. However, in Q3, AWS revenue growth accelerated to 20%.
Meanwhile, growth looks like it should continue to pick up. Amazon boosted its capital expenditure (capex) budget, taking it from $118 billion to $125 billion, while saying it will likely increase next year as well. At the same time, Project Rainier, which is one of the world's largest AI clusters built exclusively for Anthropic, is just starting to ramp up, using AWS' custom Trainium 2 AI chips.
Source Fool.com
