If I Could Only Buy One AI Stock Before 2027, It Would Be This One

Investors have rushed to get in on artificial intelligence (AI) stocks over the past few years as they've identified AI as the next big thing in technology. AI is exciting as it helps companies streamline processes, lower costs, make better decisions, and so much more. This is why some see it as a true revolution. Jensen Huang, chief of AI leader Nvidia, has even likened it to the Industrial Revolution, saying it will reshape the job market as that period once did.

This year, AI stocks have met with some headwinds, from concerns about the pace of AI infrastructure spending to general worries about the economy. And that has weighed on the performance of some. Still, the overall industry and the S&P 500 have been on the rise, and demand for AI products and services remains high. Analysts expect the AI market to reach into the trillions of dollars in a few years, suggesting there is still plenty of growth to come.

Now, looking ahead, if I could only buy one AI stock before 2027, I know exactly which one to choose. It would be the following...

Image source: Getty Images.

I already own this stock, but I would buy more

This particular stock is one I already own, but today, I would be happy to increase my position. I like this company because it is a leader in two booming markets, has an established track record of earnings growth, and could see a new burst of growth moving forward due to its strength in AI. The company I'm talking about is Amazon (NASDAQ: AMZN), a significant player in the e-commerce and cloud computing markets.

Amazon has generated earnings growth over time due to these businesses and has a track record of benefiting from its investments, as we can see through its return on invested capital.

AMZN Revenue (Annual) data by YCharts

The company's e-commerce business has a solid moat, and this includes its vast fulfillment network, its extensive Prime subscription program, and its brand strength. Meanwhile, Amazon has been a major winner in the AI market, benefiting in two ways. First, the company has applied AI to its e-commerce operations to gain efficiency -- for example, choosing the fastest delivery routes -- and that has helped reduce its cost to serve. The e-commerce business also uses AI to help customers shop, something that is leading to more purchases.

Second, Amazon is developing AI chips and platforms and providing those, as well as the AI products of others, through its Amazon Web Services (AWS) business. AWS is the world's cloud services leader, positioning it perfectly to benefit as companies begin to apply AI more frequently to their operations.

A trillion-dollar business down the road

AWS already is seeing tremendous growth, with the annual revenue run rate recently reaching $169 billion, and Amazon chief Andy Jassy said during the latest earnings call that he expects AWS to eventually generate trillion-dollar revenue as more business moves to the cloud. This doesn't seem like an exaggerated prediction if we look at the depth of AWS' offerings, from non-AI solutions to AI solutions -- and Amazon's venture into chips, particularly to suit the cost-conscious customer, has been a winning one. The custom chips business recently reached a more than $25 billion annual revenue run rate, and demand is soaring.

All of this is great -- but why does it make Amazon my favorite AI buy?

This stock is a fantastic option for a broad range of investors, from cautious to aggressive, because it offers the safety of a well-established e-commerce business and a cloud business that doesn't uniquely rely on AI customers. In fact, demand for non-AI services is soaring, the company said recently. To please the aggressive investor, Amazon's leadership in cloud should usher in a new wave of revenue growth as the use of AI increases in the years to come. This makes Amazon the one stock I would buy before 2027 -- to benefit from a monster business developed over time, as well as the enormous potential of AI in the years to come.

Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy.