Last year, investors focused on companies crucial to the development of a hot newish technology: artificial intelligence (AI). These players -- like Nvidia, Broadcom, or Super Micro Computer -- produce chips or equipment such as servers for data centers, the place where AI development begins. After all, it's necessary to train large language models before they can actually do the job of solving problems and executing tasks.
And these companies should continue to see growth ahead as there is plenty more AI training and data center buildout to be done. At the same time, another area of AI may share the spotlight this year, and this has to do with the idea of putting AI to work. I'm talking about the development and use of AI agents. These are AIs that help companies or industries with complex tasks that involve reasoning -- and taking action on that reasoning.
Several companies are progressing in the area of AI agents right now, but my prediction is one in particular will be one of the biggest winners of the AI agent boom. Let's check out this stock to buy now.
Image source: Getty Images.
The potential of AI agents
First, though, let's take a closer look at the potential of AI agents. These are software programs that can interact with a human, consider a problem, use data to develop a solution, and act on it. They can be used in just about any field -- for instance, insurers could use them for initial queries and the processing of certain claims, or the travel industry might use them for reservations and customer support. And each operation makes the agent "smarter," because data from it is fed back into the system.
The idea is these agents can accomplish certain tasks, then escalate to a human for highly complex operations. This frees up the humans in various departments, allowing them to work on other projects -- a huge boost to efficiency and a great way for companies to save money. The AI agent market, at a compound annual growth rate of more than 44%, is expected to reach $47 billion by 2030, according to Markets and Markets data.
So, which company is heading for an AI agent victory in this high-growth market? My prediction is Amazon (AMZN +0.55%) will be one of the biggest winners, and this is because the company will benefit from the technology in two different ways -- as a user of agentic AI and a seller of tools to develop AI agents.
NASDAQ: AMZN
Key Data Points
AI agents in e-commerce
Let's consider the AI agent use opportunity first. Amazon is a leader in e-commerce, with a massive fulfillment network worldwide, and here, AI agents could play a key role in boosting efficiency, and customer and seller satisfaction -- and this should support earnings growth over time. Amazon already has taken the first steps in this direction, launching Project Amelia, a chatbot to help sellers improve their businesses.
Initially, sellers can ask questions like "how should I prepare my store for the holiday season?" or might ask for updates on their store's traffic and sales data. Progressively, Project Amelia will offer answers to complex questions, solve problems, and take action -- making itself a true AI agent.
Build your own agent
The company's Amazon Web Services (AWS) is the world's top cloud computing player, and this is where Amazon can benefit from selling tools. AWS makes it simple for developers to build their own AI agents, suiting their business' needs, thanks to its Amazon Bedrock platform -- the creation of an agent requires only a few steps. So, here, Amazon makes it easy for others to get in on this opportunity to become more efficient. And since AWS already is the market leader, potential customers are right there, ready to use the platform to start their AI agent journey.
Amazon isn't new to the general AI market -- the company already uses many AI tools across its e-commerce business and sells everything from chips to AI services through AWS. And the work is bearing fruit. Last year, AWS reached a $110 billion annual revenue run rate thanks to sales of AI products and services.
Now, as AI agents gain momentum, I would expect AWS and Amazon as a whole to benefit. And that's why I predict this player will be one of the biggest success stories of this new wave of AI growth.
