Investment opportunities with AI! A artificial intelligence (AI) has emerged as a transformative force in the modern economy and is rapidly revolutionizing industries and businesses around the world. It is no surprise that AI has also become a highly profitable investment topic and has captivated the minds of experienced and novice investors alike. This is because several market intelligence companies expect the AI market to be worth at least $1 trillion by 2030. As a result, the relevance of this investment theme will also increase in the coming years.
“AI is probably the most important thing humanity has ever worked on. I think of it as something deeper than electricity or fire.”he said Sundar PichaiCEO of Alphabet. This is how the company that controls the search engine positions itself Google, in a 60 Minutes interview. While this may seem like an exaggeration, it could become true in the coming years.
Artificial Intelligence at Amazon
Several companies are significantly benefiting from this trend. A Amazon (NASDAQ: AMZN) is one of those companies. This is because it has extensive AI capabilities, including product discovery algorithms. Plus, inventory forecasting for your massive e-commerce business and your Bedrock service. Thus, it enables its cloud computing customers to build generative AI applications. Amazon shares have gained nearly 91% over the past year, but there is still plenty of room for growth in the stock.
Global leader in cloud computing Amazon Web Services (AWS) continues to dominate the global cloud infrastructure space. Thus, it has a 31% market share. Additionally, year-over-year revenue growth has slowed in recent quarters. But the solid customer base and long-term customer relationships can help it maintain its leadership position in the coming quarters.
Although organizations are still optimizing their cloud spending, AWS has been successful in closing deals with several customers. Then he joined names like Salesforce, BMW Group, Nvidia, Hyundai Motor, Merck It is Amgen in 2023. The company has also seen existing customers renewing contracts for larger commitments and longer terms in 2023 as companies continue to migrate workloads to the cloud.
Investment opportunities with generative AI
The growing adoption of AWS’s generative AI capabilities is also proving to be an important catalyst for growth. AWS offers customers who are building their own AI models computing power with Nvidia chips. Additionally, to provide better performance at a lower cost for AI workloads, the company has built custom AI chips, Trainium and Inferentia, to train large language models.
AWS offers its Bedrock service to companies that are working on customizing existing large language models with their proprietary data. Bedrock is already seeing widespread adoption among AWS customers. Finally, AWS also offers several generative AI applications to its customers. Prominent among them is Amazon Q, a coding companion and AWS expert. In fact, developed mainly for companies to simplify their activities and improve overall productivity.
AI-Driven Improvements in Retail Business
Amazon’s relentless focus on customer experience, operational efficiency, and strategic investments in AI technologies plays a key role in transforming its e-commerce business. The company was able to report the fastest-ever Prime delivery speed in 2023, while also reducing the cost of fulfillment for the first time since 2018. These improvements can be attributed to the success of Amazon’s regionalization strategy, in which the company restructured its delivery network to store products closer to customers. Amazon has also been leveraging predictive analytics and machine learning algorithms for optimal demand and inventory forecasting.
Amazon has invested extensively in developing generative AI applications to help improve product discovery on its online platform and personalize the shopping experience for its customers. The company launched a generative AI-powered shopping assistant called Rufus that provides personalized product recommendations and responds to queries to simplify customers’ shopping journeys. This can help to further increase user engagement levels and improve purchase conversion rates.
Unlocking a New Advertising Opportunity
Amazon considers its advertising business an important source of revenue. The company reported 26% year-over-year growth in its advertising business in the fourth quarter of fiscal 2023 (ended December 31, 2023), driven primarily by sponsored ads. The company is using machine learning algorithms to deliver relevant, useful, and personalized ads to customers that align with their preferences and past search queries, all while balancing ad load (the number of ads shown on the page).
Amazon is also focused on sponsored television advertising in the US. By providing brands with a self-service solution to create streaming TV campaigns with no minimum spend requirements, the company aims to quickly penetrate a broad customer base. Brands are increasingly embracing streaming TV advertising to reach viewers on platforms like Prime Video, Twitch, Freevee It is FireTV.
Source: Atrevida
Earl Johnson is a music writer at Gossipify, known for his in-depth analysis and unique perspective on the industry. A graduate of USC with a degree in Music, he brings years of experience and passion to his writing. He covers the latest releases and trends, always on the lookout for the next big thing in music.
