Why Amazon (AMZN) is a Top AI Stock Pick of Cathie Wood?

Cathie Wood’s Stake: $279,823,368 

Think of Amazon and AWS, Cloud and AI travel to caput earlier e-commerce. That’s a triumph for the institution that has positioned itself astatine the forefront of the AI revolution.

Amazon Web Services was already a person successful the unreality marketplace erstwhile the AI gyration started, and that presumption has importantly boosted its growth. Demand has accrued arsenic AI companies and enterprises present request acold much computing powerfulness to bid and tally ample models, driving higher usage of AWS’s GPU-based unreality services and AI chips similar Trainium and Inferentia. The result? AWS gross roseate 28% successful Q1, amounting to astir a $150 cardinal annualized tally rate, marking its fastest maturation successful 15 quarters.

Amazon Web Services is nary longer conscionable a unreality and software-focused AI company. Its AI-focused Trainium spot enactment is seeing beardown request and accelerated scaling. Trainium has already built a backlog of implicit $225 billion, and that fig had crossed $20 cardinal earlier portion inactive increasing astatine a triple-digit year-over-year rate.

Amazon.com Inc (NASDAQ:AMZN) precocious said its Trainium2 spot delivers astir 30% amended price-performance than comparable GPUs and is mostly sold out, showing beardown adoption from AI customers. Its next-generation Trainium3 improves show by different 30% to 40% implicit Trainium2 and is already astir afloat subscribed.

Vulcan Value Partners stated the pursuing regarding Amazon.com, Inc. (NASDAQ:AMZN) successful its Q1 2026 capitalist letter:

“There were 7 worldly detractors to performance: Ares Management Corporation, Ryan Specialty Holdings, Inc., Microsoft Corporation, Salesforce, Inc., UnitedHealth Group Incorporated, Amazon.com, Inc. (NASDAQ:AMZN), and SAP SE. Amazon reported beardown results for its fiscal twelvemonth and 4th quarter. During the 4th quarter, AWS’s gross accrued 24% and highly profitable advertizing gross grew 22%. AWS is benefitting from AI driven request for its unreality services and its ....” (Click Here to Read the Letter successful Detail)

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