Artificial intelligence stocks are driving the 2025 stock market boom, pushing the Nasdaq and S&P 500 to new highs. Third-quarter earnings season for AI, big tech, and the overall market is in a crucial phase.

Five of the Mag 7 tech stocks, including Amazon, are set to report Q3 earnings, with Amazon earning a Zacks Rank #1 (Strong Buy).

Amazon’s AWS holds 30% of the global cloud infrastructure market, surpassing Microsoft and Alphabet. The company is heavily investing in AI and is betting on shaping future AI developments.

Amazon is integrating AI into its business, expanding into streaming, and growing its digital advertising segment. Post-COVID, it has focused on profits and is projected to grow EPS by 24% in 2025.

Amazon stock has surged in the past but has underperformed recently. It is trying to break above its trading range and could see a breakout with a strong earnings report.

Investors might consider buying Amazon for its potential post-earnings surge and long-term AI growth. Wall Street largely agrees, with 52 out of 58 brokerage recommendations as a “Strong Buy.”

Zacks names a #1 semiconductor stock positioned to take advantage of the growing demand for AI, Machine Learning, and IoT. Global semiconductor manufacturing is projected to reach $971 billion by 2028.

Read more at Nasdaq: Is Amazon the Best Mag 7 AI Stock to Buy Before Earnings?