Alright, let's get one thing straight: I've been side-eyeing Amazon's stock for years. Seemed like it was coasting on fumes, you know? Everyone buys stuff there, sure, but "stuff" ain't exactly innovation.
The Cloud's Silver Lining (Maybe)
But then this AI thing hits, and suddenly AMZN is up 30% over the last year? What in the actual hell? And it hits an all-time high?
It all boils down to cloud computing, apparently. Amazon Web Services (AWS) is supposedly "growing at a pace we haven’t seen since 2022," according to CEO Andy Jassy. Translation: they're making bank off AI hype.
The article says analysts liked the 20% growth in cloud computing. Okay, fine. But is it real growth, or just everyone scrambling for AI servers because they're afraid of missing out? Are they building something that will last, or just renting out shovels during a gold rush?
And this $38 billion deal with OpenAI... I mean, come on. It's OpenAI. They're the darlings of the AI world, but let's be real, their stuff is buggy and half-baked. Is Amazon betting on the right horse, or just throwing money at the shiniest object?
Meanwhile, I'm still waiting for Amazon to fix their search algorithm so I don't have to wade through pages of garbage to find a decent USB cable. Priorities, people!
The "Magnificent Seven" and the AI Hype Train
The article mentions Amazon being part of the "Magnificent Seven." Give me a break. It's like they just threw a bunch of tech companies in a hat and picked some names.
And this whole AI boom... I'm not buying it. It feels like 1999 all over again. Dot-com bubble 2.0, anyone? Everyone's throwing money at anything with "AI" in the name, and nobody seems to know what they're actually doing.
Amazon's got this new AI chip, Trainium, that's "fully subscribed and a multi-billion-dollar business." Okay, color me skeptical. How much of that is real demand, and how much is just companies trying to look like they're on the cutting edge? I swear, if I see one more press release about "AI-powered synergy," I'm gonna lose it.
Offcourse, it's not just Amazon. Everyone's doing it. It's like a giant game of corporate chicken, and nobody wants to be the first to blink.
Then again, maybe I'm just a grumpy old cynic.
So, Is Amazon Finally Worth a Damn?
Look, I'll admit it: Amazon's making moves. But I'm not convinced it's anything more than a temporary sugar rush fueled by AI hype. Until they can prove they're building something sustainable and not just chasing the latest fad, I'm keeping my distance.