Amazon (NASDAQ: AMZN) has emerged as one of the standout stock performers in 2023, leveraging the fervor surrounding generative artificial intelligence (AI) solutions.
Positioned among the “Magnificent Seven” stocks propelling the stock market‘s ascent, Amazon and its peers have collectively accounted for 80% of the S&P 500‘s gains this year.
While concerns linger about market concentration, Amazon’s stellar performance persists, evident in its recent achievement of another 52-week high on Monday, November 27. As a result, the e-commerce and cloud-computing giant is on track to record the best yearly performance in several years.
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AMZN stock price analysis
During the Monday session, shares of Amazon soared to $149.26, marking its new 52-week high. At the same time, this was also AMZN’s highest point since April 2022.
A day later, on November 28, Amazon’s stock saw a slight pullback, closing at $147.03 on the day. Its weekly performance, however, remains in the green at +2.2%.
Year-to-date, the tech giant’s shares are now up over 71% and are heading for their best year since 2015.
The stock’s latest uptrend was fueled by Amazon’s most recent quarterly report unveiled in October, which smashed Wall Street’s estimates. Revenue surged 13% in the quarter, a clear sign that the business is growing at an accelerated pace after a challenging 2022 marked by record-high inflation and rising rates.
Amazon unveils new AI chip
In its latest AI-oriented initiative, Amazon’s AWS cloud unit unveiled new offerings to enhance customers’ capabilities in building and running AI applications on November 28.
Among the announcements is the provision of access to Nvidia’s latest H200 AI graphics processing units, an upgrade from the H100. Additionally, AWS introduced its own Trainium2 AI chip and the versatile Graviton4 processor.
The heightened demand for these advanced chips, sought after by major corporations, startups, and government entities, underscores the significance of cloud providers like Amazon in providing access to cutting-edge technology. Nvidia claims that the H200 will deliver output nearly twice as fast as its predecessor, the H100, the chip OpenAI used to train its most advanced large language model (LLM) underpinning ChatGPT.
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