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Key Points
The artificial intelligence (AI) market was valued at approximately $190 billion in 2023, with projections from the United Nations estimating it will reach nearly $5 trillion by 2033.
Amazon Web Services (AWS), which generated operating profits of $11.5 billion last quarter with margins around 39.5%, is increasingly boosting Amazon’s overall profitability, accounting for a significant portion of its total operating profits of $18.4 billion. The rise of AI is driving demand for AWS, which holds about 30% of the global cloud infrastructure market.
Amazon’s e-commerce revenue increased by 8% in North America last quarter, while AWS revenue rose by 17%. The growth and profitability of AWS highlight the potential long-term investment opportunity in Amazon as a major player in the AI landscape.
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