Amazon stock is outperforming Nvidia and Palantir in AI sector, with strong growth potential.
From Nasdaq: 2025-06-27 12:33:00
Shares of Nvidia and Palantir Technologies have skyrocketed in the past two years due to the increasing adoption of AI technology globally. Nvidia’s stock has surged 886%, while Palantir has seen a bigger increase of over 2,000%. The demand for Nvidia’s AI hardware and Palantir’s software platforms has been driving these remarkable gains.
Nvidia and Palantir stocks are now trading at premium valuations, with Nvidia’s price-to-earnings ratio at 46 and Palantir at 608 times earnings. Investors are advised to explore alternative AI stocks with attractive valuations and growth potential in this fast-growing sector.
Amazon, with a market cap of $2.2 trillion, has seen its stock rise by 148% since the beginning of 2023. The company is poised to benefit from AI adoption in various sectors, including e-commerce, cloud services, and advertising. Amazon’s use of AI in its fulfillment network, robotics, shopping, Prime Video, and advertising experiences positions it well for future growth.
Amazon is leveraging AI to enhance the customer shopping experience, optimize product suggestions, and improve fulfillment services. The company’s custom AI processors like Trainium2 and Inferentia chips offer higher performance at lower costs compared to competitors. With a leading position in the cloud infrastructure market, Amazon is set to capitalize on the growing demand for AI-related services, expected to generate over $1.1 trillion in annual revenue by 2033.
Investors seeking a reasonably valued AI stock with strong growth potential should consider Amazon over Palantir and Nvidia. Amazon’s earnings growth rate is projected to improve, with estimates forecasting a 12% jump this year. The company’s diverse revenue streams, combined with its competitive valuation, make it an attractive investment in the AI space.
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Read more at Nasdaq: The Best AI Stock Today Isn’t Nvidia or Palantir, and Shares Are Soaring