Amazon Stock: AI Push Continues Despite Share Decline

Amazon is aggressively expanding its artificial intelligence initiatives despite its stock losing over 9% of its value this year. On Monday, shares dropped 3.7% to $191.80, marking a significant distance from the 52-week high of $242.51 reached in February 2025. The decline comes as the company announces substantial investments in AI technology, with plans to allocate around $100 billion for infrastructure development this year. During its recent earnings call, Amazon outlined intentions to further strengthen its AI operations, viewing this sector as having enormous growth potential.

New AI Agent Division Created

A key component of Amazon's AI strategy involves the establishment of a specialized group within Amazon Web Services (AWS) focused exclusively on agent-based AI technology development. AWS CEO describes this area as the "next multi-billion dollar business." The team will be led by an executive who played a crucial role in building and scaling AWS. Industry experts predict that AI agents represent the next significant application of artificial intelligence in daily life, potentially transforming how people interact with the internet. This positions Amazon in direct competition with other tech companies also heavily investing in AI applications. Despite current market challenges, analysts remain optimistic about Amazon's future, setting an average price target of $258.86 per share for the company.