Amazon (NASDAQ: AMZN ) stock remains a great long-term investment . It continues to outpace the broader market, a trend that has been ongoing for the last 18 months. Year to date, Amazon’s share price is up 20%, nearly double the 11% gain in the benchmark S&P 500 index.
Over the last 12 months, Amazon stock has gained 75%. While other megacap technology giants such as Apple (NASDAQ: AAPL ) and Tesla (NASDAQ: TSLA ) have tumbled into the red this year, Amazon continues marching higher, fueled by growth and innovation. AMZN Stock and AI There have been some perceptions that Amazon is not an AI company, or at least running behind in the race to add AI features and monetize them.
Amazon is doing its best to dispel those inaccurate perceptions. Recently, the e-commerce giant announced it is investing an additional $2.75 billion in Anthropic , a privately held San Francisco-based startup company that’s widely viewed as a leader in AI.
It’s the second major investment that Amazon has made in Anthropic. In September 2023, the company invested $1.25 billion in the AI startup.
The $4 billion total that’s been allocated to Anthropic marks the biggest outside investment ever for Amazon, which is looking to gain an edge in the race to develop AI technologies. Amazon maintains a minority stake in Anthropic and won’t have an Anthropic board seat. However, Amazon gets access to Anthropic’s AI technology, which has set industry benchmarks in areas such as reasoning and math.
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