Artificial intelligence (AI) continues to be a driving force in the markets as the use cases for AI accelerate. Some of the newest ways people are using AI today are the agentic type, like having a large-language model (LLM) find the best flights or make a grocery order.
As the opportunity evolves, it's expanding. According to Grand View Research, the AI market opportunity was $391 billion last year, and it's expected to increase at a compound annual growth rate of 30.6%, reaching nearly $3.5 trillion by 2033.
Large hyperscalers have been investing billions in their platforms to grab market share, and they all offer their own take on AI development. Amazon (AMZN +3.47%), in its inimitable way, has been the flashiest hypserscaler, and it's planning to spend $200 billion in 2026.
Apple (AAPL 0.85%), on the other hand, has been fairly quiet about its AI plans. And while the market was negative about Apple seemingly falling behind last year, it's starting to change its tune, prizing Apple's prudent plans while becoming more concerned about Amazon's high spending.
Which one of these AI stocks is the better buy today?
Image source: The Motley Fool.
Amazon: Preparing for a windfall
Amazon has the largest cloud business in the world in Amazon Web Services (AWS), and it's taking the lead in developing the AI business to maintain its position. To that end, the company is pouring money into the platform, so much so that the market is starting to raise an eyebrow. CEO Andy Jassy asserts that these are necessary investments and that they'll pay off in spades as AI heats up and Amazon is prepared.
"We have a chance to build an even more meaningful business in Amazon in the coming years with strong return on invested capital," he said, "and we're investing to do so." He said Amazon will spend a whopping $200 billion in capital expenditures in 2026, mostly on AWS.
AWS offers a large assortment of AI services at various price points to meet demand across the enterprise. The platform features a wide array of LLMs and signature products like SageMaker, which unifies a company's data and offers analytics.
The company, whose main business is still e-commerce, has been reporting strong growth all around. Sales were up 14% year over year in the 2025 fourth quarter, a fantastic showing, considering Amazon is the largest company in the world by sales. AWS sales increased 24%, also on a tremendous base.
NASDAQ: AMZN
Key Data Points
Apple: The unmatched ecosystem
Apple, unlike its large tech peers, has opted to not create its own LLM. It recently partnered with Alphabet to use its Gemini LLM to power a revamped Siri that's set to launch in the coming months.
What makes Apple a serious AI business is that the company offers a broad set of AI services through its various devices. Apple has a base of 2.5 billion active devices with users who are highly engaged and using AI through Apple's hardware.
Watchers have been waiting for Apple to announce some kind of AI development to compete with the other hyperscalers, but now that the race to the top of the AI mountain is looking evermore expensive, the market is starting to see the wisdom of Apple's approach. It's focus is always on the user experience, and it can get what it needs to provide that through Gemini without spending hundreds of billions of dollars.
Apple's unmatched ecosystem leads to loyalty, higher sales, and strong engagement, and AI is another way for it to advance its lead and reinforce its position.
NASDAQ: AAPL
Key Data Points
Which is the better AI stock?
I have to admit that this is a tough call for me. These are both giants, and each of these companies offers so much for investors. Either one could be a great candidate for a well-rounded portfolio.
I see Apple as being the more conservative approach. If you're looking for exposure to AI but prefer a long-term value with a stock you can count on, Apple is your pick.
If you're looking for a bit more aggressive AI play, Amazon's AI business could take it far and bring the stock along for the ride.
