"There are a lot of great artificial intelligence (AI) stocks. Despite a downturn in AI stocks in recent days, the build-out of AI clearly has a long runway that will benefit buy-and-hold investors. Two of the best and biggest hyperscalers right now are Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN). Both companies have vaunted cloud computing divisions that are rapidly growing as companies look to develop, train, and run AI programs in cloud environments."
"Amazon's revenue in the fourth quarter was $213.4 billion, up 13.6% from a year ago. More than $177 billion of that was from the company's e-commerce division, with sales up 11.8% from last year. But that pales in comparison to Amazon Web Services (AWS), which saw revenue jump 23.6% to $35.5 billion. More importantly, AWS is a much more profitable segment, generating income of $12.4 billion versus operating income of $11.6 billion for the much larger e-commerce division."
Amazon combines a legacy e-commerce franchise with Amazon Web Services (AWS), the high-margin cloud division. AWS revenue rose 23.6% to $35.5 billion and generated $12.4 billion in income versus $11.6 billion operating income for e-commerce. Alphabet and Amazon are among the largest hyperscalers supporting AI development, training, and deployment in cloud environments. Alphabet's powerful advertising business enables continued free-cash-flow positivity even with massive spending. AI stocks have shown short-term downturns, but AI build-out offers a long runway for buy-and-hold investors. A report identifies a little-known 'Indispensable Monopoly' supplying critical technology used by Nvidia and Intel.
Read at Aol
Unable to calculate read time
Collection
[
|
...
]