Amazon stock (NASDAQ:AMZN) stock remains one of the top tech stocks to buy in 2024. The company remains a leader in the technology and retail landscape, and has a number of tailwinds to drive growth in the 2024 fiscal year.
Apart from their strong positioning in the AI race, Amazon’s e-commerce business continues to hold dominant market share. Their cloud computing arm, AWS, is also a key figure in AI. This is largely due to their generative AI platform, Amazon Bedrock. With the launch of their custom AI chip and acceleration of their e-commerce business, Amazon stock is on pace to outperform the market in 2024!
Generative AI Tailwinds
Amazon stock is at the forefront of the generative AI boom, and is building all the necessary technologies and tools to accelerate AI deployments. Their cloud computing arm, AWS will be the cornerstone to the proliferation of AI technologies.
What sets Amazon apart from its competitors is its comprehensive generative AI platform, Amazon Bedrock. The platform allows its AWS customers to run, train, and deploy generative AI applications.
They also have their powerful AI assistant, CodeWhsiperer, a tool that generates code suggestions to range from snippets to full functions. This will be a game changer for developers looking to accelerate their productivity and bring projects to market faster. Moreover, Amazon Q is another powerful generative AI assistant to rival software’s like Microsoft’s co-pilot.
Driving Diversified Growth
Amazon’s e-commerce business derives immense strength from the unparalleled support of AWS. Its cloud computing platform offers scalable infrastructure, enabling expansion during peak demand periods without extensive CAPEX. This flexibility provides Amazon with a competitive advantage in the cutthroat world of e-commerce.
Moreover, Amazon continues to hold dominant market share in the cloud infrastructure market. Demand for cloud services will continue to skyrocket with AI being the primary driver. Building, scaling, and deploying generative AI models requires robust computing power, with AWS well positioned to meet these needs.
While their AWS platform generates a bulk of the company’s profits, that could change in the coming years. The company continues to see strength at their e-commerce division, which saw record fast delivery shipping more than 7 billion units in the 2023 fiscal year. Additionally, Amazon advertising business is growing rapidly as revenue grew 27% YOY to $14.65 billion in Q4 2023. Things are certainly moving in the right direction, and Amazon’s cost cutting measures in 2023 are clearly working.
Amazon Stock: Profitability to Skyrocket in 2024
While market dips can spark uncertainty, astute investors will recognize Amazon’s potential for long term growth. The company maintains strong positioning in AI, cloud computing, and e-commerce creating a rock-solid investment thesis for 2024.
It also helps that the company is led by CEO Andy Jassy, who previously held the positions as SVP and CEO of AWS from 2003 – 2021. Amazon is currently guiding revenue growth between 8-13%, with operating income in the $8.0 – $12.0 billion range. This is monster growth from the year prior, and could send shares soaring to new heights.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.