Much of the excitement surrounding Magnificent Seven stocks like Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Alphabet (GOOGL), and Meta Platforms (META) is fueled by the artificial intelligence boom. Concurrently, Amazon.com (AMZN) is establishing a robust AI foundation through collaborations with tech firms such as SAP (SAP) and Meta, aiming to assist various companies in developing their generative AI strategies.
Central to Amazon’s approach is Amazon Bedrock, a fully managed service that provides access to high-performing foundation models via a single application programming interface (API). Amazon Bedrock also offers extensive capabilities for building generative AI applications, emphasizing security, privacy, and responsible AI practices.
In line with this strategy, Amazon Web Services (AWS) and SAP launched a new integration last month. This generative AI hub in SAP AI Core integrates with foundation models in Amazon Bedrock, aiming to deliver AI-driven insights and streamline manual processes for enterprise customers.
An impressive array of companies, including United Airlines (UAL), DoorDash (DASH), Salesforce.com (CRM), and Electronic Arts (EA), are leveraging the Amazon Bedrock platform.
AI Boom Amid Budget Deficits: Potential Lifeline for the S&P 500
While Nvidia, Apple, Microsoft, and Alphabet trade at or near all-time highs, Amazon is focusing on a second-stage flat base with a 191.70 buy point. On Thursday, Amazon’s stock surged above its 10-week moving average, positioning the e-commerce and cloud computing giant for a potential breakout to a record high.
Meta Platforms continues to rebuild its base following a significant drop after its April earnings report. Meanwhile, Microsoft has returned to a buy range after surpassing a 430.82 buy point in May.
On Thursday, Nvidia’s stock reached another record high, approaching the 140 mark following its recent stock split. However, the AI chip leader reversed course, closing down over 3% amid heavy trading volume. Investors should remember the eight key strategies for selling stocks as Nvidia navigates its volatile climb.
Apple’s stock also declined on Thursday, marking its third drop in the last four sessions.
On April 30, Amazon reported a 216% increase in earnings, with sales growing 13% to $143.3 billion. Analysts anticipate second-quarter earnings to rise 87% to $1.22 per share, contributing to a projected full-year gain of 76% to $5.10 per share. Wall Street forecasts a 25% increase in earnings for 2024, reaching $6.39 per share.
In Thursday’s trading, Amazon’s stock rebounded from its 10-week line, closing with nearly a 2% gain on strong volume. Unlike Nvidia, Amazon maintained its early gains throughout the day.
Amazon’s relative strength line has been on a downward trend since the current flat base began forming but is showing signs of improvement. Investors should watch for this line to trend upward, indicating rising market leadership.
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