
"Amazon ( NASDAQ:AMZN) has been a quiet laggard in the Magnificent Seven this year after gaining just over 3% year to date. With just a few trading days left in the year, it's looking like the $2.45 trillion e-commerce juggernaut is about to disappoint yet again, despite all the encouraging AI projects going on behind the scenes, from "frontier" AI agents to those impressive Trainium3 AI chips, the rollout of Alexa+, and let's not forget about the warehouse robots."
"While shares of Amazon don't seem to have much going for them as the year comes to a close, I do think the very reasonable valuation warrants giving the firm a second look, especially given the risks that many investors might be heavily underestimating the company's AI potential. Of course, AI seems to be something for retail investors to be afraid of, rather than bullish about, at least in the past couple of months amid renewed AI bubble fears."
"However, I do think that if the AI trade can regain some of its luster (perhaps as part of that so-called Santa Claus rally?), Amazon might have room to expand its multiple by a considerable amount. In the meantime, it might be worth exploring the new AI innovations going on at Amazon to see if it's worth getting in here ahead of the herd at around $228 per share."
"Amazon describes its frontier agents as "autonomous, massively scalable AI agents that work for hours without requiring intervention." Are these the profound agents that should have white-collar workers fearful for their jobs? Time will tell. Either way, the trio of frontier agents is packed wi"
Amazon has gained just over 3% year-to-date and carries a roughly $2.45 trillion market value while trading near $228 per share. The company is developing multiple AI initiatives, including frontier agents, Trainium3 AI chips, an Alexa+ rollout, and warehouse robots. Frontier agents are described as autonomous, massively scalable AI agents that can operate for hours without intervention and could affect software development teams and white-collar roles. Investor caution around AI has pressured the stock despite a reasonable valuation, and a recovery in AI sentiment could allow Amazon to expand its valuation multiple.
Read at 24/7 Wall St.
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