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Highlights

  • Amazon shares up under 2% year-to-date vs. 9% gain in Nasdaq-100
  • AWS expansion includes new data centers in Mexico, Chile, and Taiwan
  • Prime Day 2025 projected to generate USD21.4 billion in gross merchandise value

Amazon.com Inc. (Nasdaq: AMZN) is underperforming the broader technology sector in 2025, with its stock rising just under 2% year-to-date. This trails the S&P 500’s 7% and the Nasdaq-100’s 9% gains, amid intensifying competition in artificial intelligence and cloud infrastructure. Microsoft Corp. (Nasdaq: MSFT), by contrast, has advanced over 19% during the same period, bolstered by Azure’s growth and AI integration efforts.

Founded as an online bookstore, Amazon has grown into a multi-division conglomerate encompassing e-commerce, logistics, advertising, streaming, and cloud services. In recent years, revenue from third-party seller services, advertising, subscriptions, and Amazon Web Services (AWS) has achieved consistent double-digit growth. AWS, which accounts for approximately 16–17% of total revenue and over 60% of operating income, remains central to the company’s operations.

In 2025, Amazon announced USD100 billion in artificial intelligence investments, surpassing Microsoft’s USD80 billion and Alphabet Inc.’s USD75 billion. AWS CEO Matt Garman reported expanded access to Nvidia’s latest AI chips and announced new data centers in Mexico, with additional sites in development across Chile, New Zealand, Saudi Arabia, and Taiwan. Garman also noted AWS's collaboration with Nvidia to increase GB200 semiconductor availability and confirmed support for hosting OpenAI models.

Industry commentary reflects continued interest in AWS’s role in AI infrastructure. Brian White of Monness Crespi Hardt referenced AWS’s current role in training large language models and suggested growing momentum in AI inference. Evercore ISI’s Mark Mahaney called Amazon his top stock pick based on AI-related cloud potential, while Wedbush’s Dan Ives highlighted increasing enterprise demand for AI infrastructure.

Operational efficiency also remains a focus. Bank of America analysts estimate that Amazon’s AI and robotics integration could result in USD16 billion in annual cost savings by 2032. The company currently deploys over 750,000 robots that support 75% of customer orders. Separately, J.P. Morgan’s Doug Anmuth identified Amazon Prime as a key strategic asset and expects a membership price increase in 2026 that could generate an estimated USD3 billion annually.

Amazon’s four-day Prime Day 2025 event begins July 8 and features deals in over 35 categories, including new segments such as travel and groceries. Bank of America’s Justin Post expects the event to drive USD21.4 billion in gross merchandise value, a 60% increase from the previous year.