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The 1 Artificial Intelligence Stock I'd Buy With My Last $500

newsfeedback@fool.com (Adria Cimino)
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⚡ Quantum Brief
Amazon’s stock is highlighted as the top AI investment in March 2026, combining e-commerce stability with high-growth AI potential through its AWS cloud division. AI stocks have retreated after three years of rapid gains, raising investor concerns over infrastructure spending versus revenue returns—but long-term growth prospects remain strong. AWS now generates $142 billion annually, monetizing AI capacity instantly for tasks like model training and inference, positioning Amazon as a leader in the next AI growth phase. Amazon’s diversified revenue—spanning essentials like groceries and high-margin cloud services—provides resilience amid economic fluctuations, reducing investment risk. Trading at 27x forward earnings (down from 35x), Amazon offers a discounted entry point, blending safety, AI upside, and proven profitability.
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By Adria Cimino – Mar 19, 2026 at 4:10AM ESTKey PointsThis tech company has built a strong source of earnings growth over time.It may be well-positioned to benefit from the next phase of AI growth. Artificial intelligence (AI) stocks have slipped recently, giving up some of their momentum after three incredible years. These stocks had led indexes higher as investors favored them for their exciting growth stories. AI has the potential to be the next big thing in technology, revolutionizing the way companies operate -- and significantly boosting earnings. But from late last year through the present time, concerns have upset the performance of these stocks. Investors have questioned the level of spending on infrastructure, for example, and whether the revenue opportunity will make the spending efforts worthwhile. Still, evidence from AI companies continues to show a bright future -- and that this AI growth story is far from over. With this in mind, here's the one AI stock I'd buy with my last $500. Image source: Getty Images. An e-commerce empire This stock is one many of us know, even if we're not particularly focused on the world of AI. I'm talking about Amazon (AMZN 2.48%), a company that has built an e-commerce empire. This business generates revenue investors can count on, as it has proven itself over time, and the company's cost structure revamp a few years ago should maximize profitability moving forward. The fact that Amazon not only sells general merchandise but also essentials like groceries makes it a business that may succeed in any economic environment. So, Amazon offers us a certain element of safety. At the same time, the company's presence in the AI market is delivering growth, and there should be much more to come.

Through Amazon Web Services (AWS), the cloud computing business, Amazon makes a variety of AI products and services available to customers -- from chips to a fully managed service called Amazon Bedrock. ExpandNASDAQ: AMZNAmazonToday's Change(-2.48%) $-5.33Current Price$209.87Key Data PointsMarket Cap$2.3TDay's Range$208.82 - $215.1452wk Range$161.38 - $258.60Volume76KAvg Vol49MGross Margin50.29% Monetizing AI capacity And here's the great news for investors: As soon as Amazon makes capacity available, it's monetized. Thanks to the AI business, AWS has reached a $142 billion annual revenue run rate. Customers turn to AWS for tasks such as the training of models or the inference process that helps large language models solve real-world problems. Inference is seen as one of the next major growth drivers in the AI story, and one that may be long-lasting, as it's necessary for the actual use of AI. Here, AWS is well-positioned to benefit. Meanwhile, Amazon stock is reasonably priced today at 27x forward earnings estimates, down from more than 35x just a few months ago. This offers investors a great opportunity to get in on the shares. This attractive price, Amazon's solid e-commerce business, and its successes in AI make this the one AI stock I'd buy with my last $500.Read NextMar 17, 2026 •By Patrick SandersThe Best Warren Buffett Stocks to Buy With $900 Right NowMar 16, 2026 •By Micah ZimmermanThe $1 Billion Question: Can Hyperscalers Afford to Lose a Data Center to War in 2026?Mar 15, 2026 •By Daniel SparksPalantir vs. Amazon: Which AI Stock Is a Better Buy Now?Mar 15, 2026 •By Keithen DruryThe Most Overlooked Artificial Intelligence (AI) Stocks in the "Magnificent Seven" for 2026Mar 15, 2026 •By John BromelsPrediction: The Iran War Will Reshape Where AI Gets Built for the Rest of 2026Mar 15, 2026 •By Marc Guberti3 Top Buffett Stocks to Buy and Hold for the Long HaulAbout the AuthorAdria Cimino is a contributing Motley Fool stock market analyst covering healthcare, technology, and consumer goods sectors. Prior to The Motley Fool, Adria covered the European stock market and U.S. stocks pre-market trading for Bloomberg News, Bloomberg TV, and Bloomberg Radio for more than a decade. Earlier in her career, she wrote about biotech, medtech, and technology companies in Boston for Mass High Tech, an American City Business Journals publication. She holds a bachelor’s degree in mass communications from the University of South Florida.TMFAdriaCiminoX@adria_in_parisStocks MentionedAmazonNASDAQ: AMZN$209.87(-2.48%)-$5.33*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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