Amazon’s decade-long rally—up roughly 700%—is being underpinned by massive investments in artificial intelligence. In its online store, more than 250 million customers have tried the Rufus shopping assistant, helping deliver a 10% year-over-year sales increase last quarter on a constant-currency basis. Meanwhile, Amazon Web Services—the leading enterprise cloud provider—has reached an annualized revenue run rate of $132 billion, with demand for AI-optimized cloud services cited as the primary growth driver.

The company has deployed over one million robotics units across its fulfillment centers, a move that is materially reducing operating costs and speeding order processing. This automation push has enabled Amazon to convert a larger share of its retail sales into operating profit, even as the e-commerce business scales to serve more than 300 million active customer accounts worldwide.

Advertising is now generating $71 billion in annualized revenue for Amazon, making it the fastest-growing segment. In the third quarter, ad revenue climbed 22% year over year on a currency-neutral basis, driven by AI-enhanced tools for ad creation, targeting, and analytics. This segment’s improved return on investment for buyers is expected to support continued double-digit growth, bolstering overall operating margins.

Analysts forecast Amazon’s earnings per share to expand at an 18% annualized rate over the next several years, reflecting the company’s diversified profit base. While the online retail business continues to grow, the majority of operating profit is generated by AWS and the advertising division. Together, these segments contribute over 60% of Amazon’s total operating income, providing a resilient foundation for long-term shareholder returns.