Just caught up on something interesting about Amazon that most investors seem to be sleeping on. While everyone's been obsessed with Nvidia's insane run, Amazon stock has actually been the laggard of the Magnificent Seven over the past five years, up only 44% compared to the S&P 500's roughly 80%. That's a pretty wild gap for a company of Amazon's scale.

Here's what got my attention though. Amazon just hit $2.3 trillion in market cap and pulled in $716.9 billion in revenue last year, making it the world's largest company by revenue. But the margins tell an interesting story. AWS, their cloud division, only represents 18% of total revenue yet accounts for $45.6 billion of their $80 billion in operating income. That's the power of high-margin cloud infrastructure.

The thesis I'm seeing is that Amazon's e-commerce business is about to get a serious margin boost from AI and robotics. Think warehouse automation, autonomous delivery, route optimization—all the stuff that could dramatically cut operating expenses on their massive revenue base. Unlike AWS, e-commerce has always been a razor-thin margin business, but that could be changing.

What makes this interesting for artificial intelligence stocks to buy is that Amazon's already seeing AWS benefits from AI demand, but the real upside might be hiding in how AI transforms their core retail operations. Some analysts are floating the idea that if Amazon achieves meaningful margin improvements over the next five years, the stock could potentially surge 74% to join Nvidia in the $4 trillion club. That's the kind of artificial intelligence stocks to buy thesis that actually makes sense when you dig into the numbers.

The company's investing heavily right now to build out the infrastructure, so we're probably in the early innings. When those margin improvements actually start showing up in earnings, the market could quickly reprice the stock. For anyone looking at artificial intelligence stocks to buy with real revenue scale behind them, Amazon's worth keeping on your radar. The upside potential from AI-driven margin expansion on a $716.9 billion revenue base is pretty hard to ignore.