Amazon Trails Nasdaq 100 as AI Concerns Spike

- Amazon shares up just 5.5% in 2025, lagging Nasdaq 100’s 13% gain. - Investor concern mounts over AWS growth, AI strategy, and key departures. Amazon’s shares have lagged in 2025 as investors grow increasingly skeptical about the company's ability to effectively leverage the artificial intelligence (AI) market. Slowing growth in its cloud division, Amazon Web Services (AWS), and the recent departure of a pivotal executive in AI chip development fuel these concerns. On August 19, 2025, Cryptopolitan reported Amazon’s stock climbed only 5.5% year-to-date, sharply below the Nasdaq 100’s nearly 13% advance. This performance places Amazon among the lower-tier performers in the index, an unusual shift from its historical dominance. Investors question Amazon's ability to lead in the AI sector, concerned that its broad diversification across e-commerce, advertising, cloud services, and brick-and-mortar operations dilutes its focus as an AI-driven powerhouse. AWS, traditionally Amazon's profit driver, now adds to investor anxiety. In Q2 2025, AWS reported 17% revenue growth, while in contrast, Microsoft Azure grew by 39% and Google Cloud by 32%. Meanwhile, competitors like Oracle and CoreWeave are attracting significant AI-focused investment as they increase their AI infrastructure spending. As a result, these dynamics have sparked debate over a potential decline in AWS's market share in a fiercely competitive landscape. Compounding these concerns, Amazon has lost key talent in critical areas. Arm Holdings recently hired Rami Sinno, a key figure behind Amazon’s proprietary AI chips, Trainium and Inferentia. This move by Arm not only underlines its growing push into the AI hardware sector but also raises questions about Amazon’s ability to maintain its technological edge, especially as industry-wide demand for high-performance AI chips intensifies. Wall Street analysts are divided on Amazon’s future, with many worrying about slower cloud growth and AI setbacks. However, the majority of analysts still rate Amazon stock as a "buy," citing confidence in the company's long-term AI investments and diversified revenue streams.