Amazon (NASDAQ:AMZN) stock looks well -positioned to rocket much higher over the long term. The conglomerate will use autonomous-delivery systems by 2026, greatly enhancing its e-commerce performance.
Given these points, along with the likelihood it is on its way to disrupting the U.S. prescription drug-delivery sector, I’m very bullish on AMZN stock.
AWS, AI Services and AMZN Stock
Last month, AWS unveiled many new, AI-oriented services it’s going to sell. Among the most important of these offerings are its “new generative AI assistant, Amazon Q” and a new AI chip that will be used by AWS’ customers to create new AI systems.
Amazon Q is an AI chatbot that, like OpenAI’s ChatGPT, can answer questions from humans quickly and accurately. The chatbot, which will cost $20-$25 per user per month, depending on the number of features enabled, will “help people understand the capabilities of AWS and trouble-shoot issues.”
The product can reduce programmers’ work loads, provide the sources that it used to answer questions, and answer users’ questions about apps and data stored in software.
Taken together, these services can save users a great deal of time by enabling them to obtain a great deal of information and perform tasks much more quickly and easily. As a result, I predict that Amazon Q will be a big hit for AWS.
Called Trainum2, the new AI chip will provide computers with AI much faster than AWS’ current offerings and will use half the energy of its standard processors. As many companies look to utilize AI to great extents, Tranum 2 should also be very popular with AWS’ customer base.
Additionally ,AMZN is partnering with Nvidia (NASDAQ:NVDA) to help AWS’ clients create and manage AI systems.
Also noteworthy is that Amazon is partnering with Amgen (NASDAQ:AMGN), a huge biotech company, in an effort to develop AI systems that will make the drug-development process less arduous. I anticipate drug makers investing heavily in AI to streamline drug development.
Drones and Prescription Drugs
Amazon unveiled an improved autonomous delivery drone called the MK30. Set to debut in 2024, the drone should be deployed in more U.S. markets than its predecessor and will also be used in the U.K. and Italy.
Amazon has complained that the U.S. Federal Aviation Administration has been slow when it comes to rolling out regulations that will allow drones to be deployed on a large scale.
The agency will release the regulations and Amazon will deploy drones, lowering costs and delivery times. Amazon’s e-commerce unit’s share gains should greatly accelerate due to this achievement.
I remain convinced that AMZN stock will benefit. The company can disrupt the inefficient U.S. drug-delivery system.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
