Prediction: Amazon CEO Andy Jassy Will Make an Announcement on July 30 That Sends This Neocloud Stock Parabolic
Amazon is scheduled to report second-quarter earnings on July 30.
Overview
There are numerous ways Amazon (NASDAQ: AMZN) stands to benefit from artificial intelligence (AI). Some of the more obvious efficiencies can be gained through robotics or more targeted advertising, both of which stand to improve the company's logistics and e-commerce operations.
In my eyes, the biggest opportunity for AI-driven growth touches the company's cloud infrastructure business, Amazon Web Services (AWS). Amazon CEO Andy Jassy has already hinted that the company's custom Trainium, Inferentia, and Graviton chips could be sold externally. Meanwhile, Jassy has made it clear that Amazon's data center build-outs are a core pillar supporting the company's broader AI roadmap.
Details
One thing investors seem to overlook, however, is that AWS has also leaned into neocloud capacity deals to supplement its own infrastructure. With Amazon scheduled to report earnings on July 30, I think Jassy could announce a new neocloud agreement -- specifically with Nebius Group (NASDAQ: NBIS). Let's dig into why a deal between AWS and Nebius could make sense.
Source
Originally published at www.fool.com.