1 Unstoppable Artificial Intelligence (AI) Stock to Buy Right Now

Source The Motley Fool

In 2023, Bank of America analyst Michael Hartnett coined the term "Magnificent Seven" to describe a group of powerhouse tech stocks, inspired by the classic 1960s Western film. These companies, among the market's most valuable, are leading the way in artificial intelligence (AI), cloud computing, online gaming, and advanced hardware and software.

Over the past five years, the Magnificent Seven have delivered mind-boggling returns, but 2025 has been more challenging. So far, only Meta Platforms has significantly outperformed the S&P 500 (SNPINDEX: ^GSPC) (up 2.4% year to date as of this writing), while others have flat-out struggled.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

AAPL Chart

AAPL data by YCharts

One standout performer this year is Amazon (NASDAQ: AMZN), a leader in e-commerce and cloud computing. With its stock outperforming the S&P 500 by a little over 2% year to date, Amazon is proving to be an unstoppable force as it deepens its push into AI.

A humanoid robot working at a laptop.

Image source: Getty Images.

Let's explore why this AI pioneer scans as a top buy right now.

The three layers of AI

During Amazon's Feb. 6 earnings call, CEO Andrew Jassy outlined the company's comprehensive AI strategy, revealing approximately 1,000 different generative AI applications either already built or in development. Amazon's approach spans three critical technology layers, each showing significant progress.

Amazon develops proprietary AI chips at its foundation. The recently launched Trainium2 delivers 30% to 40% better price performance than current graphics processing unit (GPU) alternatives, according to the company. Building on this success, Amazon plans to release Trainium3 in late 2025 and has begun defining Trainium4. It is also partnering with chatbot pioneer Anthropic for frontier model development.

In the middle layer, Amazon Bedrock provides foundation models for building AI applications. In Q4 2024, the company introduced its Nova models inside the Bedrock platform, delivering comparable intelligence to leading models at a staggering 75% lower cost than its other offerings. This technological breakthrough has already attracted several major customers like Palantir Technologies, SAP, and Robinhood.

At the application level, Amazon's AI assistant, Q, demonstrates practical value for users. In early implementations, Q generated substantial savings, including $260 million and 4,500 developer years in Java migrations. The company is expanding Q's capabilities to help customers more efficiently migrate existing Windows servers, VMware systems, and mainframe computers to Amazon Web Services (AWS).

Investing heavily in AI

Amazon's 2024 Q4 earnings report demonstrated its massive investment capacity, with capital investments reaching $26.3 billion in the quarter. While this spending spans various business needs, the company has prioritized AI development as a key strategic focus. This aggressive investment strategy is already showing results, with AWS's AI-related revenue growing at a blistering pace and contributing to the division's $115 billion annualized revenue run rate.

While current growth faces hardware supply and power infrastructure constraints, Amazon expects these limitations to ease in the second half of 2025. As Jassy emphasized during the earnings call, "AI represents, for sure, the biggest opportunity since cloud and probably the biggest technology shift and opportunity in business since the internet."

Why Amazon stock is a buy

Amazon stock trades at 35.4 times forward earnings, compared to 24.2 times for the benchmark S&P 500. This premium reflects the company's comprehensive AI strategy and proven execution across multiple layers of the tech value chain. The tech giant offers investors exposure to every critical layer of the AI stack, from custom chips to enterprise applications.

Moreover, Amazon's AI business is already generating a triple-digit annualized revenue growth rate. With supply constraints expected to ease in the second half of 2025, Amazon appears well-positioned for the next wave of AI growth.

For investors seeking AI exposure, Amazon offers proven capability and a substantial capital investment in the technology that should drive significant revenue growth for years to come.

Should you invest $1,000 in Amazon right now?

Before you buy stock in Amazon, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $813,868!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

Learn more »

*Stock Advisor returns as of February 7, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bank of America is an advertising partner of Motley Fool Money. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. George Budwell has positions in Apple, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Forecast: XAU/USD drifts higher above $4,200 as Fed delivers expected cutGold price (XAU/USD) gains momentum to around $4,235 during the early Asian session on Thursday. The precious metal extends its upside after the US Federal Reserve (Fed) delivered an expected third consecutive interest rate cut and maintained its outlook for just one cut in 2026.
Author  FXStreet
Dec 11, Thu
Gold price (XAU/USD) gains momentum to around $4,235 during the early Asian session on Thursday. The precious metal extends its upside after the US Federal Reserve (Fed) delivered an expected third consecutive interest rate cut and maintained its outlook for just one cut in 2026.
placeholder
Gold remains bid as lack of Fed clarity and geopolitical frictions persistGold (XAU/USD) advances modestly on Friday as traders seem to book profits ahead of the weekend, yet clings to gains of over 0.51% after reaching a seven-week high of $4,353. At the time of writing, XAU/USD trades at $4,302 as traders digest comments from Federal Reserve (Fed) officials.
Author  FXStreet
Yesterday 01: 34
Gold (XAU/USD) advances modestly on Friday as traders seem to book profits ahead of the weekend, yet clings to gains of over 0.51% after reaching a seven-week high of $4,353. At the time of writing, XAU/USD trades at $4,302 as traders digest comments from Federal Reserve (Fed) officials.
placeholder
Ethereum Price Slips Lower — $3,000 Looms as the Key BattlegroundEthereum is attempting to recover from a $3,026 low but remains below $3,200 and the 100-hour SMA, with a bearish trend line near $3,175 capping rebounds as bulls need a clean break above $3,200 to target $3,250–$3,400, while a drop below $3,050 risks a retest of $3,000 and $2,940.
Author  Mitrade
Yesterday 03: 25
Ethereum is attempting to recover from a $3,026 low but remains below $3,200 and the 100-hour SMA, with a bearish trend line near $3,175 capping rebounds as bulls need a clean break above $3,200 to target $3,250–$3,400, while a drop below $3,050 risks a retest of $3,000 and $2,940.
placeholder
Macro Analysts: Hawkish Japan Could Push Bitcoin Below $70KAnalysts predict Bitcoin may face further declines towards the $70,000 mark if the Bank of Japan raises interest rates as expected.
Author  Mitrade
Yesterday 05: 48
Analysts predict Bitcoin may face further declines towards the $70,000 mark if the Bank of Japan raises interest rates as expected.
placeholder
Bitcoin Slides 5% as Sellers Lean In — Can BTC Reclaim $88,000?Bitcoin has dropped back below $88,000 after rolling over from $90,500, with price still trading under the 100-hour Simple Moving Average. The sell-off found a floor at $85,151, and BTC is now consolidating near that base, but rebounds are facing pressure from a bearish trend line around $89,000. Bulls need to retake $88,000–$89,000 to ease downside risk; failure to do so keeps $85,500–$85,000 and then $83,500 in play, with $80,000 as the deeper “line in the sand.” Bitcoin (BTC) is back in damage-control mode after a sharp pullback wiped out recent gains. The price failed to reclaim the $90,000–$90,500 band, rolled over, and slid through $88,500 before briefly dipping under $87,000. Buyers did show up around $85,000, but the rebound so far looks more like stabilization than a clear trend reversal. Bitcoin dips hard, finds a bid near $85,000(h3) BTC’s latest move lower began when it couldn’t build follow-through above $90,000 and $90,500. Once that upside stalled, sellers took control and pushed price down through $88,500. The slide accelerated enough to spike below $87,000, but the market didn’t free-fall. Bulls defended the $85,000 zone, printing a low at $85,151. Since then, Bitcoin has been consolidating below the 23.6% Fibonacci retracement of the drop from the $93,560 swing high to the $85,151 low — a clue that the bounce is still shallow and that sellers haven’t fully backed off yet. Structurally, BTC is still on the back foot: It’s trading below $88,000, and It remains below the 100-hour Simple Moving Average, keeping short-term trend pressure pointed downward. Resistance is layered, and $89,000 is the problem area(h3) If bulls try to turn this into a recovery, they’ll have to climb through multiple ceilings in quick succession. First, BTC faces resistance around $87,150, followed by a more meaningful barrier near $87,500. From there, the market’s attention snaps back to $88,000 — the level BTC just lost and now needs to reclaim. A close back above $88,000 would improve the tone, but it doesn’t solve the bigger issue: there’s a bearish trend line on the hourly BTC/USD chart (Kraken feed) with resistance near $89,000, which also lines up with the next technical hurdle. If BTC can push through $89,000 and hold, the rebound could extend toward $90,000, with follow-through targets at $91,000 and $91,500. But until price clears that $88,000–$89,000 zone, rallies are at risk of being sold rather than chased. If BTC fails to reclaim resistance, the downside path is clear(h3) The near-term bear case is simple: if Bitcoin can’t climb back above the $87,000 area and keep traction, sellers may attempt another leg lower. Support levels line up like this: Immediate support: $85,500 First major support: $85,000 Next support: $83,500 Then $82,500 in the near term Below that, the major “don’t break this” level is still $80,000. If BTC slips under $80,000, the risk of acceleration to the downside increases significantly — not because it’s magic, but because it’s the kind of psychological and structural level that tends to trigger forced de-risking. Indicators: momentum still leans bearish(h3) The intraday indicators aren’t offering much comfort yet: Hourly MACD is losing pace in the bearish zone. Hourly RSI remains below 50, suggesting sellers still have the upper hand on short timeframes. So while the $85,000 defense held for now, the market hasn’t flipped bullish — it’s just stopped bleeding.
Author  Mitrade
10 hours ago
Bitcoin has dropped back below $88,000 after rolling over from $90,500, with price still trading under the 100-hour Simple Moving Average. The sell-off found a floor at $85,151, and BTC is now consolidating near that base, but rebounds are facing pressure from a bearish trend line around $89,000. Bulls need to retake $88,000–$89,000 to ease downside risk; failure to do so keeps $85,500–$85,000 and then $83,500 in play, with $80,000 as the deeper “line in the sand.” Bitcoin (BTC) is back in damage-control mode after a sharp pullback wiped out recent gains. The price failed to reclaim the $90,000–$90,500 band, rolled over, and slid through $88,500 before briefly dipping under $87,000. Buyers did show up around $85,000, but the rebound so far looks more like stabilization than a clear trend reversal. Bitcoin dips hard, finds a bid near $85,000(h3) BTC’s latest move lower began when it couldn’t build follow-through above $90,000 and $90,500. Once that upside stalled, sellers took control and pushed price down through $88,500. The slide accelerated enough to spike below $87,000, but the market didn’t free-fall. Bulls defended the $85,000 zone, printing a low at $85,151. Since then, Bitcoin has been consolidating below the 23.6% Fibonacci retracement of the drop from the $93,560 swing high to the $85,151 low — a clue that the bounce is still shallow and that sellers haven’t fully backed off yet. Structurally, BTC is still on the back foot: It’s trading below $88,000, and It remains below the 100-hour Simple Moving Average, keeping short-term trend pressure pointed downward. Resistance is layered, and $89,000 is the problem area(h3) If bulls try to turn this into a recovery, they’ll have to climb through multiple ceilings in quick succession. First, BTC faces resistance around $87,150, followed by a more meaningful barrier near $87,500. From there, the market’s attention snaps back to $88,000 — the level BTC just lost and now needs to reclaim. A close back above $88,000 would improve the tone, but it doesn’t solve the bigger issue: there’s a bearish trend line on the hourly BTC/USD chart (Kraken feed) with resistance near $89,000, which also lines up with the next technical hurdle. If BTC can push through $89,000 and hold, the rebound could extend toward $90,000, with follow-through targets at $91,000 and $91,500. But until price clears that $88,000–$89,000 zone, rallies are at risk of being sold rather than chased. If BTC fails to reclaim resistance, the downside path is clear(h3) The near-term bear case is simple: if Bitcoin can’t climb back above the $87,000 area and keep traction, sellers may attempt another leg lower. Support levels line up like this: Immediate support: $85,500 First major support: $85,000 Next support: $83,500 Then $82,500 in the near term Below that, the major “don’t break this” level is still $80,000. If BTC slips under $80,000, the risk of acceleration to the downside increases significantly — not because it’s magic, but because it’s the kind of psychological and structural level that tends to trigger forced de-risking. Indicators: momentum still leans bearish(h3) The intraday indicators aren’t offering much comfort yet: Hourly MACD is losing pace in the bearish zone. Hourly RSI remains below 50, suggesting sellers still have the upper hand on short timeframes. So while the $85,000 defense held for now, the market hasn’t flipped bullish — it’s just stopped bleeding.
goTop
quote