Amazon has leveraged artificial intelligence across its operations to drive cost savings and revenue growth without the frothy valuations seen in pure-play AI names. In its most recent quarter, AWS’s AI portfolio hit a $132 billion annual revenue run rate, contributing to cloud revenue growth of 28% year-over-year. Concurrently, AI-powered logistics enhancements in its e-commerce segment have reduced delivery costs per package by an estimated 7%, boosting gross margins toward 50%. Despite these gains, Amazon’s shares trade at 29 times forward earnings—well below the more than 50 times multiple of two years ago—providing investors access to AI upside with less downside risk.

Amazon has broken ground on its largest-ever physical retail venture: a 230,000-square-foot store on a 35-acre site in Orland Park, Illinois. Half of the facility will function as a traditional grocery and general merchandise outlet with prepared-food counters, while the other half will serve as a fulfillment center for both in-store and online orders. With U.S. grocery sales expected to approach $1 trillion this year and over 80% of retail still occurring in physical locations, Amazon’s integrated store-fulfillment model aims to capture incremental market share and generate substantial local sales tax revenue without relying on municipal incentives.