Amazon stock surges 50% with AI chip launch and automotive expansion

From Nasdaq: 2024-12-11 21:27:43

Amazon stock (NASDAQ: AMZN) has surged nearly 50% this year, outperforming Apple and Alphabet. Recent developments include the launch of Trainium3, a powerful AI chip, and plans for a massive AI supercomputer. Amazon is also expanding into the automotive sector with Amazon Autos, offering new cars in 48 U.S. cities.

Amazon’s AI products are being marketed to other companies, with Apple using Amazon’s chips for tasks like search. The company plans to build an AI supercomputer using Trainium2 chips. In the automotive space, Amazon Autos will connect customers with dealerships to buy new cars, starting with Hyundai in 48 U.S. cities.

Amazon stock has seen volatile returns, with 2% in 2021, -50% in 2022, and 81% in 2023. In contrast, the Trefis High Quality Portfolio has shown more stable returns, outperforming the S&P 500 each year. Amazon’s valuation is improving, with a P/E ratio of about 35x 2025 earnings and a stock price aligned with Trefis estimates.

Investing with Trefis’s High Quality Portfolio has yielded strong returns, with Amazon stock up 48% YTD in 2024. The Trefis Reinforced Value Portfolio has also shown robust performance, outperforming the S&P 500 in total returns since 2016. Consider Trefis Market-Beating Portfolios for potential investment opportunities.



Read more at Nasdaq: How Amazon’s AI Chips, Auto Push Impact The Stock