AI is a major growth opportunity for Amazon and Microsoft, with both companies integrating AI across their services. Amazon’s AWS business is its biggest profit contributor, with AWS sales rising 20.2% in Q3. Microsoft’s Azure revenue grew 40% in Q1, with operating income up 24%. Both companies are spending heavily on AI infrastructure to support growth.

Amazon and Microsoft are well-positioned as AI growth stocks due to their existing profitable businesses and the new opportunities AI presents. However, investing in AI is expensive and comes with risks. Both companies trade at forward price-to-earnings ratios of 29 and 30, respectively. Despite high valuations, their significant spending on AI infrastructure is expected to pay off in the long term.

Investors should consider the potential for significant returns by investing in the 10 best stocks identified by the Motley Fool Stock Advisor team. While Amazon and Microsoft weren’t on the list, historical returns show the potential for substantial gains. Stock Advisor’s total average return is 969%, compared to 196% for the S&P 500. Consider joining Stock Advisor for access to the latest top stock picks and join a community of individual investors.

Read more at Nasdaq: 2 AI Growth Stocks to Buy Now