1 Striking Reason This Trillion-Dollar Cloud Pioneer Is a Better Artificial Intelligence (AI) Buy Than Apple Right Now
Publish Date: 2026-06-24 02:17:00
Source Domain: www.theglobeandmail.com
- Apple’s Stock Performance: Apple (NASDAQ: AAPL) has substantially outperformed the market over the past year, nearly doubling in value at 50% compared to an overall rise of 47%.
- Amazon’s Growth Potential vs. Apple’s Limitations: While Apple has enjoyed growth, it hasn’t fully capitalized on the AI boom due to not heavily investing in AI, unlike its peers. Conversely, Amazon’s stock growth has been more moderate at 12%.
- AWS Driving Amazon’s Success: Amazon Web Services (AWS) is the cornerstone of Amazon’s growth, accounting for 59% of Amazon’s operating profit and fueling the company’s overall profitability and fastest growth segment.
- Investment in Computing Power: AWS is experiencing 28% growth and is receiving massive investments from Amazon. AWS is on the brink of a significant growth cycle thanks to the company’s $200 billion capital expenditure for enhancing computing capacity to meet rising demand.
- Valuation Consideration: Apple’s valuation has reached high levels, appearing nearly double from that of Amazon’s, evaluated by operating cash flow which removes the impact of capital expenditures and other factors. Amazon remains within its historical valuation range.
- Future Prospects: Given its growth trajectory and current valuation, Amazon is projected to likely outperform Apple in the coming five years as more computing capacity from investments like AWS comes online.
- Stock Advisor Recommendations: According to The Motley Fool Stock Advisor, recommending other stocks such as Netflix and Nvidia, Amazon was not among their top 10 picks suggesting a more cautious approach toward investing in Amazon currently.
