If you’re looking to invest in a company likely to benefit from artificial intelligence (AI) today and down the road, you may consider buying a “Magnificent Seven” stock. With a moniker inspired by the 1960 Western, these players are technology leaders, and each is investing in the area of AI. The one that has become almost synonymous with this hot technology is Nvidia because this company’s chips power AI — and dominate the industry.
Though Nvidia makes a great buy, another stock could make an even better AI bet right now. That’s because this company is likely to benefit from Nvidia’s strength as well as its own AI products and services — and it’s involved in two other high-growth businesses. On top of this, this company uses AI to streamline its operations, which should lead to earnings gains in the coming years. So, investing in this player gives you a complete AI package and more. Let’s take a close look at this AI powerhouse to buy now.
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A leader in two growth markets
And this top stock is Amazon (NASDAQ: AMZN), a leader in the growth markets of e-commerce and cloud computing. Amazon is positioned to win in these two markets thanks to its earnings track record and leadership in these areas as well as moves it made in recent times to favor growth.
Faced with rising inflation back in 2022, Amazon posted its first annual loss in nearly a decade. Higher costs weighed on customers’ wallets and on the company’s costs. But Amazon quickly turned things around by revamping its cost structure and shifting investment into growth areas like technology infrastructure.
The efforts worked, helping Amazon to report double-digit revenue gains last year and a tripling of operating income. The company also shifted to an inflow of cash of more than $36 billion from an outflow a year earlier. Amazon’s cost cuts, moves to become more efficient across its fulfillment network, and expansion of Amazon Web Services’ (AWS) offerings helped the company manage during tough times and recover.
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And, importantly, these efforts should help Amazon…
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