This AI Stock Could Be a Key Winner With Another Decade of Growth

2026-03-05 00:20:00 ET

Amazon (NASDAQ: AMZN) stock saw a big valuation contraction following the publication of the company's fourth-quarter results. Sales for the period actually came in ahead of expectations, but earnings missed the market's forecast. The business posted non-GAAP (adjusted) earnings of $1.95 per share on sales of $213.4 billion, while the average analyst estimate had modeled for per-share earnings of $1.97 on sales of $211.3 billion.

Despite better-than-anticipated sales performance last quarter, investors bristled at higher-than-anticipated costs and the tech giant's guidance for massive capital expenditures (capex) this year. In order to continue building out its AI infrastructure and pursue other growth bets, Amazon anticipates spending roughly $200 billion this year.

While the company's massive capital expenditure outlays will put a substantial damper on the company's near-term earnings, there are good reasons to continue liking Amazon as an artificial intelligence ( AI ) stock for the long term.

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