Amazon is set to invest $200 billion in artificial intelligence (AI) development in 2023, the highest among major tech companies, as it seeks to capitalize on the increasing shift to cloud services. CEO Andy Jassy emphasized the company’s experience in leveraging demand signals within Amazon Web Services (AWS), which currently has a $142 billion run rate, to generate strong returns. AWS experienced a 24% increase in sales year-over-year in Q4, further solidifying its leading position in the cloud market.
Although Amazon’s stock has decreased by 12% over the past year, Wall Street remains optimistic, with an average target suggesting a potential 42% rise over the next 12 to 19 months. Additionally, Amazon is enhancing its e-commerce and advertising divisions, reporting a 22% growth in advertising sales year-over-year in Q4. New services, such as Amazon Now, are projected to improve customer engagement and sales significantly.
