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But could itsstock(AMZN) be poised to outpace the market for the next five years?
Some analysts say yes with many focused on the tech giants innovations in artificial intelligence (AI).
Here are four reasons whyAMZN could make a great addition to your portfolio.
An Underrated AI Play
Mostly dominated by Nvidia, 2024 was the year of AI.
Yet, some experts say Amazon could actually be a smarter long-term play.
Amazon has applied much of this investment into creating a flagship line of AI training chips.
The early results are very promising.
Apple and Anthropic have already committed to using Amazons new chips to train their models.
Amazon has launched six foundational large language models (LLMs) that produce images, videos and text.
They cost as much as 75% less to use than other models, such as ChatGPT and Claude.
Expansion Into More Industries
AI innovations represent only a part of Amazons growth potential.
Over the next five years, it could unlock billions of dollars in new revenue from such bold initiatives.
Customer Loyalty Through Prime
Customer loyalty is another major advantage for Amazon.
About 200 million Amazon Prime members worldwide enjoy discounts on everything from e-commerce deliveries to audiobooks.
E-commerce Is Still Growing
Finally, dont forget about Amazons core business: e-commerce.
Should You Invest In Amazon?
Amazon is uniquely positioned to excel over the coming decade.
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