Key Points
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Amazon is the largest cloud provider with the most competitive options, allowing you to benefit as more clients move to the cloud.
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Unity has made some major changes, but the inventory is very undervalued.
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10 shares I like more than Amazon
Artificial intelligence (AI) is engaging the world in a storm with what looks like a blink of an eye. It also played a major role in pushing the stock market to new record highs.
Although there have been some data recently raised questions about the level of profitability companies are getting from AI integration, technology is still beginning to change the world. And long-term investors who support the right players can win big wins.
Where would you invest $1,000 now? Our team of analysts revealed what they believe 10 Best Stocks Buy now. Continues “
With that in mind, take a look at the two stocks identified by fool.com, which contribute to outstanding purchases among other AI investment opportunities.
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The biggest cloud provider, the biggest profit
Jennifer Cybil (Amazon): Amazon (NASDAQ: AMZN) Investors who were disappointed in a second quarter report released two weeks ago can take Amazon Stock DIP as an opportunity to buy, provided they can focus on the future. There are many reasons to imagine that he will continue to grow over the next few years and becoming one of the top AI players.
According to Statista, it is already the world's largest cloud service provider and accounts for 30% of the market. One of the market-worriing updates after the report was the growth of Amazon Web Services (AWS), a crowd segment of Amazon. Quarterly sales increased 17%, only half of the growth of our nearest competitors; Microsoftazure. Because AWS sales were much higher than Azure sales, nearly $120 billion over 12 months, Azure sales were $75 billion, and Amazon's dollar stock growth was still high.
There were other issues that bothered the market, such as uncertainty about tariffs and the outlook that didn't quite match expectations. However, these are short-term conflicts along the roads, and investors should be able to look past them and see long-term opportunities, especially with AI.
As the largest cloud company, Amazon has the incredible potential to build generative AI businesses that are primarily on the cloud. CEO Andy Jassy is investing more money than his competitors, which increased to more than $100 billion this year in their second quarter release. From small players who need plug-in solutions to some of the world's largest companies, we offer numerous services to meet demand at all levels.
Amazon's trademark service is called Bedrock and offers most of the LLM and tools to help developers create AI apps that suit their needs. These include the LLMS range from high cost to free, as well as Amazon's proprietary Nova LLM. Last year, Amazon acquired a stake in the AI company Humanity. They create their own hardware with budget chips due to their small needs, but they also have a robust partnership with the chip powerhouse nvidia.
CEO Andy Jassy continues to remind investors that 85% to 90% of information technology (IT) costs are still on-site, but that is going to turn it into the cloud over the next 10-15 years. As the biggest cloud provider, there's a set of most competitive options in place, so Amazon is well placed to benefit from wind drops when it happens.
The stock, which has grown more than 140% last year, is still flying under the radar
Keith Noonan (Unity Software): When most people think about hot AI stocks, Unity Software (NYSE: u) It's probably a name that doesn't appear very often. The company specializes in video game development tools and digital marketing services, and has generally been doing tough things since it was released almost five years ago. The company's stock price fell 41% from its all-time high of 80% market closure on the day of the initial public offering (IPO) (IPO).
While some of the conceptualized and executed growth bets and monetization strategies have resulted in the company losing its position in key markets, the company is switching leadership teams and moving forward with a new focus on profitability and strategic innovation. The turnaround initiative helped the company's share price exceed 140% last year, and the comeback rally could still be an early inning.
Sales increased by 1.4% each quarter in the second quarter, with management leading to single-digit sequential growth this quarter. Compared to other companies that are heavily exposed to AI trends, it may not look much, but the relatively modest topline expansion blurs the bigger comeback photos. Along these lines, the company's new AI-driven AD network is in a very early stage that will drive and possibly impact 15% sequential sales growth in the second quarter.
UNITY's AI digital marketing platform looks poised to replicate your business. This is far from the company's only AI-related opportunity. Software and data that helps non-playable game characters navigate the virtual world can be very useful when it comes to training robots to navigate real spaces.
Unity also provides the leading development platform for creating augmented reality (AR) and virtual reality (VR) applications. Its data and software tools also prove to be extremely valuable as Tech Giants is looking for the next big hardware platform after mobile.
Should I invest $1,000 in Amazon now?
Consider this before purchasing stock on Amazon.
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Jennifer Cybil has no position in any of the stocks mentioned. Keith Noonan holds a Unity software position. Motley Fool has positions and is recommended for Amazon, Microsoft, Nvidia, and Unity Software. Motley Fool recommends the following options: A $395 phone at Microsoft for January 2026 length and a $405 phone to Microsoft for January 2026 short term. Motley Fools have a disclosure policy.
Disclaimer: Information only. Past performance does not indicate future results.
