Much of the buzz around Magnificent Seven stocks like Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Alphabet (GOOGL) and Meta Platforms (META) stems from the boom in artificial intelligence. Meanwhile, Amazon.com (AMZN) stock continues to lay down an AI “bedrock” in collaboration with tech firms like SAP (SAP) and even Meta to help a wide range of companies build their generative AI strategies.

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At the heart of this approach is Amazon Bedrock, a fully managed service that offers a choice of high-performing foundation models through a single API, or application programming interface. Amazon Bedrock also enables a broad set of capabilities to build generative AI applications with security, privacy and responsible AI.

Expanding this strategy, Amazon Web Services, or AWS, and SAP unlocked a new integration last month. A generative AI hub in SAP AI Core integrates with foundation models in Amazon Bedrock. The goal is to deliver generative AI-driven insights and streamline manual processes for enterprise customers.

An impressive lineup of companies, ranging from United Airlines (UAL) and DoorDash (DASH) to Salesforce.com (CRM) and Electronic Arts (EA), have tapped into the Amazon Bedrock platform.

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Amazon Stock Lays Groundwork For Breakout

While Nvidia, Apple, Microsoft and Alphabet all trade at or near all-time highs, Amazon continues to work on a second-stage flat base showing a 191.70 buy point. A breakout would lift the e-commerce and cloud computing giant to a record high of its own.

Further highlighting the bullish action in the tech-heavy Nasdaq, Meta stock continues to refurbish its own base following a sharp drop after its April earnings report. Plus, Microsoft has rebounded into buy range after clearing a 430.82 buy point in May. Early Thursday, Nvidia stock blasted out to yet another record high, teasing the 14o mark following its recent stock split.

On April 30, Amazon reported 216% earnings growth. Sales grew 13% to $143.3 billion. Analysts expect second-quarter earnings to rise 87% to $1.22 per share leading to a full-year gain of 76%, to $5.10 a share. In 2024, Wall Street forecasts a 25% rise to $6.39 per share.

To kick of Thursday’s action, Amazon stock jumped off its 10-week moving average as it tries to complete its current base. Its relative strength line remains in a downward trajectory since the current flat base began forming, but may be poised to turn that around. Look for the RS line to trend upward to show rising market leadership.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.

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