Better Artificial Intelligence (AI) Stock: Amazon vs. Alphabet
Better Artificial Intelligence (AI) Stock: Amazon vs. Alphabet
Publish Date: 2026-07-15 16:40:00
Source Domain: www.theglobeandmail.com
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Key Points:
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Market Strategies and AI Focus:
- Amazon (AWS) and Alphabet (Google Cloud) are deploying different strategies in the AI race with their respective cloud services.
- Both companies are heavily investing in data centers to build computational capacity for the cloud market.
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Profitability and Growth:
- Amazon’s AWS contributes significantly more to the company’s operating profit (59% of operating profit) compared to Alphabet’s Google Cloud despite being smaller.
- Alphabet’s revenue and earnings per share growth are currently outpacing Amazon’s, predicting 21% revenue growth for the remainder of 2026 vs. 15% for Amazon.
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Investment Considerations:
- Despite being more expensive than Alphabet, Amazon remains a solid investment due to the stability of its e-commerce business.
- Alphabet showcases faster growth and a lower stock price, making it a currently more attractive buy.
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AI Capabilities:
- Alphabet features a native generative AI model (Gemini family) within Google Cloud, while Amazon offers AI models via its diverse ecosystem but lacks a proprietary model on AWS.
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Summary Verdict:
- Both are significant players in the AI space and in the cloud computing market, yet Alphabet appears marginally better positioned for growth and is the preferred buy at present.
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