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Amazon (AMZN) Expands AWS Clientele With Exscientia Deal
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Amazon’s (AMZN - Free Report) shares have rallied 28.5% year to date, outperforming the industry growth of 18.8%. The company is riding on its robust cloud computing arm — Amazon Web Services (“AWS”). The solid customer momentum of AWS is driving the company’s top line.
This is evident from the latest collaboration of Exscientia (EXAI - Free Report) with AWS. The former strives to power its platform for end-to-end drug discovery and automation with the help of AWS.
This deal highlights the efficiency and reliability of AWS's innovative cloud products and services.
Per the terms, Exscientia is expanding the use of AWS’s artificial intelligence (AI) and machine learning (ML) services to accelerate early drug development at a lower cost. It is leveraging generative AI models of AWS to design drug candidates efficiently. It has deployed generative AI in its DesignStudio. The company draws on large language models via Amazon Bedrock.
Exscientia also plans to include robotic automation in its lab works on the back of its collaboration with AWS.
Customer Base Expansion Aids Growth
The latest move of Exscientia has added strength to AWS’s customer base.
AWS’s portfolio strength is driving its customer momentum.
Recently, Smartsheet implemented AWS’s Amazon Q Business to introduce a generative AI-powered assistant for its employees.
Formula 1 (F1) teamed up with AWS to introduce a generative AI-designed F1 trophy for the Canadian Grand Prix with the support of AWS.
FWD Group Holdings Limited recently selected AWS as its strategic cloud provider.
SAP joined forces with AWS to embed generative AI solutions across its enterprise resource planning applications. SAP will integrate generative AI models from Amazon Bedrock, such as the Anthropic Claude 3 model family and Amazon Titan, into its generative AI hub in SAP AI Core.
NinjaTech AI partnered with AWS to launch its next-generation AI agent called Ninja, which has been trained using the latter’s ML chips Trainium and Inferentia2 in order to make them powerful and useful.
CrowdStrike extended its strategic partnership with AWS to accelerate cloud security and AI innovation.
Brightcove started using Amazon’s generative AI assistant called Amazon Q Business on AWS internally for real-world use cases applicable to the enterprise, media and entertainment technology sectors.
Zilch extended its collaboration with AWS to expand the use of the latter’s AI and ML services in order to accelerate sales in the next two years, and improve customer service and lending decisions.
AWS’s expanding customer base will continue to drive its top-line growth. In first-quarter 2024, AWS generated revenues of $25.04 billion (18% of the total sales), which grew 17% year over year.
The Zacks Consensus Estimate for 2024 AWS revenues is pegged at $106.5 billion, indicating a growth of 17.3% year over year.
The strengthening performance of AWS, which has become the key catalyst of Amazon, will benefit the overall financial performance of the company.
The Zacks Consensus Estimate for 2024 revenues is pegged at $638.24 billion, which indicates a year-over-year increase of 11%. The consensus mark for 2024 earnings has been revised upward by 0.9% to $4.58 per share over the past 60 days. The figure indicates year-over-year growth of 57.9%.
Competitive Scenario
We believe that AWS’s growing clientele, on the back of its expanding portfolio, as well as data centers and cloud regions, will continue to help the Zacks Rank #2 (Buy) company gain a competitive edge against its peers, namely Microsoft (MSFT - Free Report) and Alphabet’s (GOOGL - Free Report) Google.
Microsoft is continuously riding on strong momentum across its Intelligent Cloud business, driven by the solid adoption of Azure. Strength in Azure AI remains a positive. The company’s strong efforts to power its cloud capabilities with generative AI are noteworthy. Also, growth in AI Copilot is contributing well to Microsoft’s cloud business.
Meanwhile, Google Cloud, which has turned out to be the key catalyst for Alphabet’s growth, is gaining from the growing generative AI capabilities, increasing data centers, availability zones and cloud regions. The solid adoption of the Google Cloud Platform and Google Workspace is a major positive.
Conclusion
AWS’s expanding clientele, deepening focus on generative AI and strong competitive position are expected to benefit Amazon’s prospects. In addition to the cloud, strong capabilities, especially in grocery and pharmacy retail, coupled with ultrafast delivery services, are boosting its e-commerce prospects. The growing footprint in the video streaming space with Prime Video is another positive.
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Amazon (AMZN) Expands AWS Clientele With Exscientia Deal
Amazon’s (AMZN - Free Report) shares have rallied 28.5% year to date, outperforming the industry growth of 18.8%. The company is riding on its robust cloud computing arm — Amazon Web Services (“AWS”). The solid customer momentum of AWS is driving the company’s top line.
This is evident from the latest collaboration of Exscientia (EXAI - Free Report) with AWS. The former strives to power its platform for end-to-end drug discovery and automation with the help of AWS.
This deal highlights the efficiency and reliability of AWS's innovative cloud products and services.
Per the terms, Exscientia is expanding the use of AWS’s artificial intelligence (AI) and machine learning (ML) services to accelerate early drug development at a lower cost. It is leveraging generative AI models of AWS to design drug candidates efficiently. It has deployed generative AI in its DesignStudio. The company draws on large language models via Amazon Bedrock.
Exscientia also plans to include robotic automation in its lab works on the back of its collaboration with AWS.
Customer Base Expansion Aids Growth
The latest move of Exscientia has added strength to AWS’s customer base.
AWS’s portfolio strength is driving its customer momentum.
Recently, Smartsheet implemented AWS’s Amazon Q Business to introduce a generative AI-powered assistant for its employees.
Formula 1 (F1) teamed up with AWS to introduce a generative AI-designed F1 trophy for the Canadian Grand Prix with the support of AWS.
FWD Group Holdings Limited recently selected AWS as its strategic cloud provider.
SAP joined forces with AWS to embed generative AI solutions across its enterprise resource planning applications. SAP will integrate generative AI models from Amazon Bedrock, such as the Anthropic Claude 3 model family and Amazon Titan, into its generative AI hub in SAP AI Core.
NinjaTech AI partnered with AWS to launch its next-generation AI agent called Ninja, which has been trained using the latter’s ML chips Trainium and Inferentia2 in order to make them powerful and useful.
CrowdStrike extended its strategic partnership with AWS to accelerate cloud security and AI innovation.
Brightcove started using Amazon’s generative AI assistant called Amazon Q Business on AWS internally for real-world use cases applicable to the enterprise, media and entertainment technology sectors.
Zilch extended its collaboration with AWS to expand the use of the latter’s AI and ML services in order to accelerate sales in the next two years, and improve customer service and lending decisions.
AWS’s expanding customer base will continue to drive its top-line growth. In first-quarter 2024, AWS generated revenues of $25.04 billion (18% of the total sales), which grew 17% year over year.
The Zacks Consensus Estimate for 2024 AWS revenues is pegged at $106.5 billion, indicating a growth of 17.3% year over year.
The strengthening performance of AWS, which has become the key catalyst of Amazon, will benefit the overall financial performance of the company.
The Zacks Consensus Estimate for 2024 revenues is pegged at $638.24 billion, which indicates a year-over-year increase of 11%. The consensus mark for 2024 earnings has been revised upward by 0.9% to $4.58 per share over the past 60 days. The figure indicates year-over-year growth of 57.9%.
Competitive Scenario
We believe that AWS’s growing clientele, on the back of its expanding portfolio, as well as data centers and cloud regions, will continue to help the Zacks Rank #2 (Buy) company gain a competitive edge against its peers, namely Microsoft (MSFT - Free Report) and Alphabet’s (GOOGL - Free Report) Google.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Microsoft is continuously riding on strong momentum across its Intelligent Cloud business, driven by the solid adoption of Azure. Strength in Azure AI remains a positive. The company’s strong efforts to power its cloud capabilities with generative AI are noteworthy. Also, growth in AI Copilot is contributing well to Microsoft’s cloud business.
Meanwhile, Google Cloud, which has turned out to be the key catalyst for Alphabet’s growth, is gaining from the growing generative AI capabilities, increasing data centers, availability zones and cloud regions. The solid adoption of the Google Cloud Platform and Google Workspace is a major positive.
Conclusion
AWS’s expanding clientele, deepening focus on generative AI and strong competitive position are expected to benefit Amazon’s prospects. In addition to the cloud, strong capabilities, especially in grocery and pharmacy retail, coupled with ultrafast delivery services, are boosting its e-commerce prospects. The growing footprint in the video streaming space with Prime Video is another positive.