3 Reasons to Buy Amazon Stock Like There's No Tomorrow

Shares of tech titan Amazon (NASDAQ: AMZN) took a hit after the company released its fourth-quarter earnings on Feb. 5. Amazon's aggressive spending plan to boost its AI tech was likely a catalyst for the sell-off.

Amazon announced capital expenditures will total about $200 billion in 2026. That's a substantial jump up from 2025's net capex of $128 billion. Wall Street is concerned the return on this invested capital won't justify the spending.

But Wall Street's worries create an opportunity to buy Amazon shares on the dip. Several factors support the retailer's enormous capital outlay. Here are three of them.

Image source: Amazon.

AI's infrastructure needs

Amazon Web Services (AWS), the retailer's cloud computing business, is set to enjoy years of growth thanks to artificial intelligence (AI). AI requires massive computing infrastructure to operate. AWS provides this to businesses building and operating AI models.

To maintain AWS' leadership as the world's top cloud computing provider, Amazon needs to invest in the service to support the demand for AI-optimized infrastructure. The division is already experiencing the benefits.

In the fourth quarter, AWS sales soared 24% year over year to $35.6 billion. That's the segment's fastest growth in 13 quarters, as AI customers adopted AWS, including OpenAI.

Amazon's own AI ambitions

The tech giant's capex investments support many of its own offerings as well, which are increasingly dependent on AI. For example, its Amazon Connect platform uses AI to provide proactive customer service, where artificial intelligence anticipates and prevents customer problems. At the end of 2025, Amazon Connect sported an annualized revenue run rate of $1 billion representing 30% year-over-year growth.

The company possesses over 1 million AI-powered robots operating in its warehouses. These machines are among the factors contributing to the company's ability to accelerate shipping speeds and scale its operations cost-efficiently. Consequently, the retailer boasted an impressive 70% year-over-year increase in the number of items capable of same-day delivery in the U.S. last year.

Amazon is also building up an autonomous car company, which relies on AI to drive the vehicles. This new ride-hailing division, called Zoox, launched in San Francisco and Las Vegas last year.

AI is improving Amazon's financials

Another reason why Amazon is a worthwhile investment for the long haul is that AI is already helping the company improve its financial performance. The conglomerate's gross profit margin has grown quickly in the last few years with the help of AI-enabled cost optimizations.

AMZN Gross Profit Margin data by YCharts.

This contributed to Amazon's 2025 operating income increasing to $80 billion from $68.6 billion in 2024. Amazon's current capex investments position the company for growth over time, and to capitalize on the opportunities presented by AI. For investors looking at the long term, Wall Street's displeasure at Amazon's Q4 results means now is a good time to pick up shares at a discount.

Robert Izquierdo has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.