Just noticed something interesting about Amazon that most investors seem to be sleeping on. Everyone's talking about AI stocks to buy right now, but there's this massive revenue giant that's been quietly lagging while the rest of the Mag 7 went ballistic.

Let me break down what I'm seeing. Amazon's up 44% over the last five years—solid, right? But here's the thing: the S&P 500 is up about 80%, and Nvidia? That thing's up 1,330%. So while Amazon's been growing, it's basically been underperforming almost everything else in the Magnificent Seven. Only Microsoft is in a similar boat, up roughly 78%. That's the kind of gap that makes you wonder what's being missed.

Here's where it gets interesting. The company's cloud business—Amazon Web Services—is already seeing real AI tailwinds. AWS only makes up 18% of total revenue but generates 57% of the company's operating income at $45.6 billion out of $80 billion total. That margin difference is wild. But e-commerce? That's still the bulk of the business and it's getting crushed by costs.

The real opportunity I'm tracking is what happens when AI and robotics start hitting e-commerce margins. Amazon's already the world's largest company by revenue at $716.9 billion in 2025—way bigger than Walmart. But those margins are thin because online retail is expensive to run. Warehouse automation, autonomous delivery, route optimization—these aren't sci-fi anymore, they're happening now.

If Amazon can meaningfully improve margins on its core e-commerce business over the next five years through AI-driven efficiency, we're talking about a completely different valuation story. The company's sitting at $2.3 trillion market cap right now. Some analysts are pricing in a potential 74% move to hit $4 trillion, which would put it in the same league as where Nvidia's headed. That's the kind of artificial intelligence stocks to buy thesis that doesn't get as much attention because it's less flashy than pure-play AI plays.

The infrastructure investment is already happening. When margin improvements start showing up in the earnings reports, the market's going to recalibrate. That's the move I'm watching. Whether it actually hits that $4 trillion target or not, the margin story alone makes this one of the more compelling artificial intelligence stocks to buy for the next leg of this cycle.