From Nasdaq: 2024-06-03 09:49:00

Amazon’s AMZN shares have surged 16.1% this year, outperforming the Zacks Internet Commerce industry. The solid performance is driven by the growth in its cloud computing arm, Amazon Web Services (“AWS”). A recent partnership with SAP will accelerate the implementation of generative AI across various enterprises, strengthening AWS’s position in the market.

With the global generative AI market projected to reach $191.8 billion by 2032, AWS’s focus on generative AI capabilities will help Amazon capitalize on growth opportunities. Collaborations with NVIDIA and SAP, along with the launch of Amazon Bedrock, are contributing to AWS’s success in the generative AI space.

AWS’s expanding clientele, including partnerships with companies like NinjaTech AI, CrowdStrike, and BlackBerry, is driving growth and innovation in the cloud market. AWS generated revenues of $25.04 billion in the first quarter of 2024, accounting for 18% of Amazon’s total sales and growing 17% year over year.

The growing clientele is helping AWS maintain its leading position in the global cloud market and compete effectively against Microsoft Azure and Google Cloud. Amazon commands 31% of the cloud provider market, while Microsoft and Google captured 25% and 10% respectively in the first quarter of 2024.

Amazon’s strategic focus on AWS’s expanding client base, strong partner network, and generative AI capabilities is boosting the company’s performance. With a Value Score of B and positive growth outlook, Amazon remains an attractive investment choice for investors looking to benefit from the company’s continued success in the cloud market.



Read more at Nasdaq: Amazon (AMZN) Rides on AWS Amid Strong Generative AI Efforts