Key Points
-
Amazon’s AI solutions are getting a lot of attention, but its advertising business is another key tailwind in addition to e-commerce.
-
Netflix is getting a lot of coverage for a potential acquisition, but its flagship businesses are sticky on their own.
-
Nvidia is arguably one of the most popular AI stocks, and for good reason.
Amazon (NASDAQ: AMZN) reported net sales of $180.2 billion in Q3, a 13% increase year-over-year, with operating income reaching $17.4 billion. Amazon Web Services (AWS) contributed significantly to this growth, showing a 20% rise to $33 billion, driven largely by demand in AI workloads. The advertising segment also saw a robust 22% increase, totaling $17.7 billion.
Netflix (NASDAQ: NFLX) achieved Q3 2025 revenue of $11.5 billion, marking a 17% increase from the previous year, while operating margins stood at 28%. The company is expanding its ad-supported tier and diversifying into gaming and live sports, projecting a free cash flow of approximately $9 billion by 2025. Meanwhile, proposed acquisitions could strengthen its market position further.
Nvidia (NASDAQ: NVDA) reported record revenue of $57 billion in its 2026 Q3, up 62% year-over-year, with a data center division revenue of $51.2 billion. The company commands an estimated 80% to 90% market share in AI data center chips, driven by demand for its high-performance GPUs. Nvidia’s stock has risen about 55% since its latest 10-for-1 split in June 2024.
