Quietly under the radar, Amazon (NASDAQ: AMZN ) stock is having an excellent year in the markets. It is up nearly 22% year-to-date, almost double the performance of the S&P 500 and the Nasdaq 100 . It always seems to be Amazon’s way.
When the world starts to write it off, the Seattle tech behemoth comes up with another money-making idea. It’s been that way since Jeff Bezos founded the company in 1994 . Just as insurance is Berkshire Hathaway’s (NYSE: BRK-B ) golden goose, Amazon Web Services (AWS) is Amazon’s big profit generator.
To ensure it stays this way, Amazon Chief Executive Officer (CEO) Andy Jassy, who ran AWS before Bezos stepped aside in July 2021 , decided last week to replace AWS CEO Adam Selipsky with AWS veteran Matt Garman. Selipsky had previously taken over AWS from Jassy. If Amazon is to remain a cash flow machine, Garman will have to transform AWS from a cloud provider to an artificial intelligence ( AI ) leader.
If there’s one thing I’ve learned about Amazon, it is that it is more than capable of meeting the challenge. Here’s why. AWS Is About to Accelerate Its AI Endeavors The good news for the newly-appointed AWS CEO is that AI requires considerable cloud infrastructure.
Microsoft (NASDAQ: MSFT ) said in April that the demand for cloud-based AI services exceeds supply despite the company spending $14 billion in capital expenditures in Q1 2024, nearly 80% higher than a year earlier. The bad news is that Microsoft Azure and Google Cloud have .
