Amazon: Don't Underestimate The Potential Of AWS To Drive The Stock Higher
Summary
- In a previous article, we had discussed how the tables may finally be turning in favor of Amazon’s AWS relative to Microsoft Azure.
- In Q2 2024, AWS finally gained market share along with Google Cloud, while Azure lost share.
- Amazon’s differentiated strategy to win this AI revolution is paying off, buoyed by the growing prominence of Meta’s open-source models, at the expense of Microsoft-OpenAI’s GPT models and Google’s Gemini.
- Despite AWS gaining ground over Azure, growing evidence shows Google Cloud’s leadership over AWS on the AI custom chips front, with Google possessing a much larger market share.
- While cloud market terminologies can be perplexing, we discuss AWS’ potential to win this AI revolution in a simplified manner, enabling investors to more easily grasp the underlying growth story.
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