Which Stock to Invest In Now: Amazon or Home Depot?

Key Points

• Amazon plans to invest $200 billion in capital expenditures this year focused on artificial intelligence (AI).

• Home Depot’s sales reached $126.5 billion in the first nine months of 2025, a 5.6% increase, but earnings fell by 2% to $11.68 per share.

• Both companies face challenges in the current market, with Amazon potentially positioned for better recovery.

Amazon (NASDAQ: AMZN) has announced a significant investment of $200 billion in capital expenditures for 2025 to enhance its AI capabilities, particularly through its Amazon Web Services (AWS), which accounted for 56% of the company’s operating profit in the previous year. The AI cloud services market is projected to reach $2 trillion by 2030, with AWS currently holding a 28% market share. In contrast, Home Depot (NYSE: HD) has seen a 5.6% sales increase to $126.5 billion in the first nine months of 2025; however, its earnings decreased by 2%, impacted by a sluggish housing market and adverse weather affecting Q3 sales.

The ongoing housing market downturn, characterized by frozen sales and increased prices, poses a significant challenge for Home Depot. CEO Ted Decker noted that consumer uncertainty and pressure in housing are adversely affecting demand for home improvements. While both companies are underperforming, analysts suggest that Amazon’s aggressive investment in AI may place it in a stronger position moving forward.