Latest news with #AndyJassy
Irish Independent
10 hours ago
- Business
- Irish Independent
Richard Curran: We cannot bury our heads in the sand as AI kills off jobs, but we must remain cautious
In trying to find the right balance in this area, it's important that Ireland doesn't hand initiative to other countries Finally, a big corporation has admitted that AI is going to reduce the number of jobs in its workforce. Ironically, that company is Amazon. While its founder, Jeff Bezos, is off enjoying his $20m Venice wedding extravaganza, his CEO, Andy Jassy, said the company would reduce its overall head count because lots of tasks are now automated and done through AI. Other CEOs have warned about the potential effects AI could have on their employment levels, but this often falls into two categories: either they are firing software engineers to replace them with more AI-proficient people, or they are trying to sell AI services by hamming up its impact.
Yahoo
a day ago
- Business
- Yahoo
The Best AI Stock Today Isn't Nvidia or Palantir, and Shares Are Soaring
Nvidia and Palantir have been big winners of the AI revolution in the past three years, but this tech giant could turn out to be a better bet going forward. The booming demand for AI in cloud services and e-commerce, and a significantly cheaper valuation than Palantir and Nvidia, suggest that this well-known company could take off in the long run. 10 stocks we like better than Amazon › Shares of Nvidia and Palantir Technologies have surged in phenomenal fashion in the past two years or so amid the rapidly growing adoption of artificial intelligence (AI) technology across the globe. While Nvidia stock has jumped an impressive 886% since the beginning of 2023, Palantir has witnessed a bigger surge of more than 2,000% as of this writing. These eye-popping gains are a result of the fast-growing demand for Nvidia's AI hardware and Palantir's software platforms that help companies and governments integrate generative AI into their operations. However, their stunning surges explains why the two stocks are now trading at premium valuations. Nvidia's price-to-earnings ratio stands at 46 right now, while Palantir is way more expensive at 608 times earnings. That's why it would be a good idea to take a closer look at another company that's not only benefiting from the growing demand for AI hardware, software, and other tools but is also trading at an attractive valuation right now. Let's look at the reasons why this alternative to Nvidia and Palantir could turn out to be one of the best AI stocks to buy right now. Amazon (NASDAQ: AMZN) is the fourth-largest company in the world with a market cap of $2.2 trillion. Shares of the company have soared an impressive 148% since the beginning of 2023, outpacing the 87% gains clocked by the Nasdaq Composite index over the same period. Though Amazon's gains aren't as big as those of Nvidia and Palantir, that could change in the long run considering the AI-related markets it could benefit from. Amazon started out as an online marketplace selling books before turning into a full-fledged e-commerce giant with a global presence. However, Amazon didn't stop at just e-commerce. It is now the world's largest provider of public cloud infrastructure services, offers movie and music streaming through its Prime subscription service, and even has a blooming advertising business. Importantly, Amazon is on track to gain from the adoption of AI in all these areas. On its first-quarter 2025 earnings conference call, CEO Andy Jassy said: You can see that in how we're using AI in our fulfillment network, robotics, shopping, Prime Video, and advertising experiences. And you can see that in the building blocks AWS is constructing for external and internal builders to build their own AI solutions. For instance, Amazon has deployed AI-powered shopping assistants on its e-commerce platform to provide personalized suggestions to shoppers in a move that can help boost sales. The company is also using AI and machine learning to analyze customer data to improve product suggestions, while also enabling sellers and brands on its platform to use this technology to optimize their product pages, create marketing and social media content, and research keywords. All this suggests that Amazon is already on track to capitalize on the AI-specific opportunity in e-commerce, which could unlock a $51 billion annual revenue opportunity for the company by 2033, according to third-party estimates. Meanwhile, Amazon is also taking AI's help to improve its fulfillment services so that it can make faster deliveries and is deploying AI-powered robots in its fulfillment centers to improve efficiency and reduce costs. However, Amazon's AI opportunity doesn't end here as the company is looking to capture a bigger share of the cloud AI market with its efficient, in-house custom processors. While Nvidia is the undisputed leader in the AI chip market right now with its powerful graphics cards, major cloud service providers such as Amazon have been developing in-house chips to offer higher performance at lower costs to their customers. For example, Amazon claims that its Trainium2 custom chip is four times more powerful than its predecessor and could be half as expensive while running certain AI models when compared to Nvidia's offerings. Additionally, the company claims that its AI inference-specific Inferentia chip could reduce costs by 40% when compared to graphics cards. With the adoption of custom AI processors expected to grow at an impressive rate of 32% through 2030, there is a good chance that Amazon will continue to witness an increase in AI-related workloads running on its cloud platform. Moreover, the company leads the cloud infrastructure market with an estimated share of 29% at the end of the first quarter. This puts it in a solid position to make the most of the cloud AI market that's expected to generate more than $1.1 trillion in annual revenue by 2033. In all, Amazon is sitting on multiple lucrative opportunities related to AI which could supercharge the company's growth in the long run. I've shown that Palantir and Nvidia are trading at expensive multiples right now. Of course, they can back up their expensive valuations with their impressive growth rates, but even Amazon's earnings growth rate is set to improve going forward. Consensus estimates are projecting a 12% jump in Amazon's earnings this year to $6.21 per share. This is expected to be followed by much stronger growth over the next couple of years. It won't be surprising to see Amazon clocking stronger growth rates in the long run as well, considering the size of the end markets that it stands to gain from. The global e-commerce market alone is expected to hit almost $6 trillion in annual revenue by 2029, and cloud AI services could unlock a $1 trillion-plus revenue opportunity. Given that Amazon is now trading at 34 times trailing earnings, it is cheaper than the likes of Palantir and Nvidia. So if you're looking for a reasonably valued AI stock with strong growth potential, consider buying Amazon before it soars higher following its healthy gains of the past two and a half years. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy. The Best AI Stock Today Isn't Nvidia or Palantir, and Shares Are Soaring was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
a day ago
- Business
- Time of India
Unlocking growth, learning from leaders & navigating AI
Dear Readers, Ever feel like the marketing world is a massive, ever-shifting puzzle? Just when you think you've got a piece in place, a whole new dynamic emerges. This week, we're diving into some fascinating shifts, from regional nuances in advertising to the ongoing impact of AI, and even a peek into the minds of industry titans at Cannes. It's all about staying agile and understanding the signals in this vibrant landscape. Here's what caught our eye: Unlock the South: Navigating India's Dynamic Regional Ad Markets This article highlights South India's increasing importance in the Indian advertising sector, contributing an estimated INR 7,500 crore to India's total TV advertising expenditure in 2024. It stresses the necessity for brands to adopt localised strategies instead of generic ones to effectively engage with consumers in the region. Tamil Nadu leads in TV AdEx among the southern states, followed by Telugu-speaking markets, Karnataka, and Kerala. Read more.. Why you should care: Understanding these cultural and linguistic nuances isn't just about reaching more people; it's about connecting authentically and unlocking massive growth potential that a one-size-fits-all approach often misses. Get ready to rethink your regional strategy! The Big Cannes Lions Chat Starring Amazon's Andy Jassy and P&G's Mark Pritchard Part 2 This article features a discussion between Amazon CEO Andy Jassy and P&G Chief Brand Officer Mark Pritchard on the evolving advertising, e-commerce, and AI landscape. It emphasises the shift from traditional advertising to a unified, customer-centric approach, particularly through Amazon's full-funnel advertising that integrates awareness with direct purchases. Click here to read.. Why you should care: This isn't just a recap; it's a direct line to the strategic thinking that's shaping the future of branding and consumer engagement from leaders who are actively defining it. Their perspectives offer invaluable lessons for marketers at every level. Meaning, Media and the Machine: Branding in the Age of AI This article explores the challenges and transformations brands face due to technological advancements, especially artificial intelligence. It notes that brands struggle with differentiation as products become functionally similar and traditional meaning-making methods are disrupted by personalised digital realities. The article details five ways AI is disrupting branding: it blurs brand boundaries through hyper-personalisation, floods the market with synthetic content leading to sameness, shifts trust from brands to algorithms, demands new ethical narratives from brands, and paradoxically, makes the human touch a preferred differentiator Read more.. Why you should care: If you're not grappling with how AI impacts your brand's narrative and media strategy, you're already behind. This piece cuts through the noise to show you how to leverage AI to build stronger, more resonant brands in a world increasingly powered by machines. More from this week Tata Play FY25 Loss Widens to Rs 529 Cr; Revenue Slides to Rs 4082 Cr Mark Pritchard with Andy Jassy: The Mega Cannes Lions Interview, part 1 India's growing influence in sport is reflection of its growing significance on global stage': JioStar's Sanjog Gupta Streaming the NFL on YouTube is helping the league connect with Gen Z, says platform's CEO What's your take on the evolving role of AI in shaping brand narratives, or the untapped potential of regional markets? Drop us a line - we'd love to hear your insights and experiences as we continue to explore these dynamic shifts together. Tag us on LinkedIn (ETBrandEquity) with your thoughts Stay tuned for the next edition of Media & Entertainment newsletter rolling out every week on Friday. -Team ETBrandEquity
Economic Times
a day ago
- Business
- Economic Times
AI at work: Job cuts and tech leader opinions
Amazon recently announced to nearly 350,000 of its employees that they must either relocate to one of its main office hubs like Seattle, Arlington (Virginia), and Washington, D.C., or leave the company without receiving severance pay. It is interesting to note how readily the company is willing to let go of employees simply to enforce a return to office-based work. However, this should not come as a surprise, given how Amazon CEO Andy Jassy has said time and again that AI adoption will reduce the company's corporate workforce. Like Amazon, many other major tech firms, including Meta, Microsoft, Google, and others, have also been affected by waves of layoffs, especially given the disruption brought about by artificial intelligence (AI). The United Nations Conference on Trade and Development (UNCTAD), in April, warned that AI could impact up to 40% of jobs worldwide. Also Read: Jobs AI won't replace: Anthropic cofounder Jack Clark names safest roles What CEOs say Global tech leaders have been expressing concerns about this development. In May, former Google CEO Eric Schmidt said professionals in many fields, including art and medicine, could become irrelevant if they do not adapt to AI. Around the same time, Nvidia CEO Jensen Huang said that every job is going to be affected by AI. 'You are not going to lose your job to AI, but you are going to lose your job to somebody who uses AI,' Huang said. Last month, Anthropic CEO Dario Amodei openly warned that AI could eat away nearly half of all entry-level white collar jobs, and soon. However, these are not just random claims but are backed by data. According to a report by McKinsey and Company, between 400 and 800 million jobs could be displaced worldwide within five years, depending on how quickly automation is shift could force around 375 million workers—14% of the global workforce—to transition into entirely new it comes to India, the Economic Survey 2024-25 has raised similar concerns and called attention to the heightened worries of workers and the speed at which AI is transforming the labour market. Hitesh Oberoi, CEO of Info Edge (which operates recently said AI isn't just about job cuts but changing the nature of work. He emphasised the need to focus on developing new skills. Zoho founder Sridhar Vembu, however, gave a more radical view on this issue. He said on X, 'The productivity revolution I see coming to software development (LLMs + tooling) could destroy a lot of software jobs. This is sobering but necessary to internalise.' The other side However, not all CEOs are eager to expand AI use. Klarna Group, a fintech firm, has chosen to reduce its AI-powered customer service. CEO Sebastian Siemiatkowski explained that the model led to a drop in service quality, and the company is now adjusting its approach. 'Really investing in the quality of human support is the way of the future for us,' he workers, too, have adopted a positive approach to AI integration in the workplace. A study by SnapLogic found that 81% of office workers believe AI enhances their job performance and overall work there is a diverse range of opinions on this topic, it is clear that workers will have to adapt to the changes brought in by the AI revolution.
Daily Mail
a day ago
- Business
- Daily Mail
Amazon announces major prime membership change
Amazon is planning to expand its same-day and next-day delivery to over 4,000 small cities, towns, and rural communities in the US. Thousands of its 200+ million Prime members will have the pleasure of having this benefit by the end of the year. 'The money saving is important, but for many rural customers, the more critical dynamic is the time saved by using Amazon. The expanded choice that Amazon offers is also very appealing to shoppers who are miles away from big malls and stores,' GlobalData retail expert Neil Saunders told 'For Amazon, rural gains are an important part of driving Prime penetration. And the business is confident it can service this profitably by adapting existing rural delivery stations into hybrid hubs which store inventory Amazon's algorithms know will be popular in the area.' Shoppers interested in trying out the platform can do so for $14.99 a month or $139 a year. The project announcement comes after Amazon made the decision to expand its Prime Day sales event to four days from two. The company had already been the topic of conversation during the rise of inflation and fears of recession after CEO Andy Jassy warned shoppers tariffs potentially rising prices. While Amazon's net sales skyrocketed to $155.7 billion this quarter, the company has been slammed by its employees and Prime members. Shoppers claimed they would cancel their memberships last year after finding out the company was axing its Amazon Today service. Prior to its removal, it was a popular perk that provided same-day delivery from select stores in the customers' neighborhoods. Members also canceled accounts after finding out its streaming service started rolling out more advertisements across its TV shows and films. The company didn't stop there with its prime perk change-ups and infuriated customers even more by raising the price of its Amazon Music Unlimited ad-free subscription program. Besides its member benefit terminations, fans have begun turning their backs on Amazon after Jassy issued a warning of brutal workforce cuts. It is unclear when the layoffs will begin and how many jobs will be axed, but Jassy revealed the cuts were the result of the company's increase in artificial intelligence. The company is keeping itself busy by preparing for Prime Day, recently warning its members about increases in cyber scams It's also exploring the idea of creating its own currency, an idea that could save the company and retailers like Walmart and Target billions of dollars. Amazon is expecting to make between $159 billion and $164 billion during its second quarter, along with a $13 billion to $17.5 billion operating income. The company will release its second quarter results on July 31 after the market closes.
