This Infrastructure Stock Could Be Your AI Boom Ticket

The Real AI Infrastructure Play No One's Talking About

I've been watching the AI space for years, and frankly, I'm tired of the same old hype machine. Everyone's obsessed with flashy AI chatbots and robot assistants, but they're missing where the real money is flowing - the backbone infrastructure that makes all this AI magic possible.

Think about it - AI needs massive computing power, and someone's got to build and maintain it. That's where Amazon's AWS division comes in, though most regular folks don't see Amazon this way at all.

AWS quietly controls a staggering 30% of global cloud infrastructure. That's not just impressive - it's bloody dominant. Microsoft and Google's parent company together barely edge past AWS with 33% market share. After them? The drop-off is brutal - Alibaba sits at a measly 4%.

The numbers don't lie: AWS sales jumped 17.5% year-over-year last quarter. Sure, operating income only grew 10%, but that's because Amazon is dumping a record $118 billion into expanding its infrastructure. They're not just riding the AI wave - they're building the ocean it rides on.

McKinsey predicts about 70% of new cloud infrastructure will be specifically built for AI and machine learning. This isn't just some future prediction - it's happening right now, and AWS is at the center of it all.

But here's the catch - you can't just buy AWS. You have to buy the whole Amazon package, including that massive e-commerce business with totally different economics. Is AWS worth buying the whole package? That depends.

Microsoft and Google are arguably more AI-focused overall. Microsoft has that cozy relationship with OpenAI, and Google's CEO is out there comparing AI to the discovery of fire. Meanwhile, Amazon's still got one foot firmly planted in the world of shipping boxes to your doorstep.

Still, if you're looking for pure AI infrastructure exposure and don't mind owning an e-commerce giant too, Amazon might be your play. Just remember - you're buying the whole damn company, not just the AI parts.

Should you invest $1,000 in Amazon right now? That's for you to decide. Just know that AWS is where the real AI action is - not in those gimmicky chatbots everyone's obsessed with.

Ryan Vanzo has no position in any of the stocks mentioned.

Disclaimer: For information purposes only. Past performance doesn't guarantee future results.

Recommended Articles

WTI Oil edges up to $61.00 with concerns about oversupply weighing

AUD/USD rises to near 0.6600 as traders pare RBA dovish bets

Strong Deliveries Fail to Reverse Slide — Policy Expiry Sends Tesla Stock "Higher Open, Lower Close"