Amazon Advances AI Shopping While Google Powers Health Tech

Amazon's AI shopping assistant, Rufus, is making a significant impact on the company's sales. In 2025, Rufus reached over 250 million customers, contributing an additional $10 billion in merchandise sales. Evercore ISI analysts note that customers using Rufus are 60% more likely to complete a purchase, leading the firm to reaffirm its Outperform rating for Amazon with a $335 price target. This success highlights the immediate commercial benefits of integrating AI directly into consumer experiences. Looking ahead, analysts project that Rufus and other AI tools could add $56 billion to Amazon's retail sales and $4 billion to its ad revenue by 2028. Overall, AI commerce features are expected to boost Amazon's total revenue by $31 billion and operating income by $6.8 billion in the same timeframe. This growth underscores a broader trend where AI is not just enhancing existing services but also driving substantial new revenue streams across the tech sector. The AI boom is also fueling massive investment in infrastructure. Companies like Iren, which transitioned from Bitcoin mining, are now focusing on providing data centers for AI cloud services. Iren secured a substantial $9.7 billion contract with Microsoft in October 2025 and has secured 3 gigawatts of power for its data center projects. Similarly, Cipher Mining, now an AI infrastructure player, signed a $5.5 billion deal with Amazon Web Services for 300 megawatts of capacity, illustrating the immense demand for AI-specific computing power. Beyond general infrastructure, specialized AI applications are also gaining traction. MedPal AI, a UK digital health company, reported strong December 2025 growth, processing over 33,000 prescription orders and generating £325,000 in sales, a 16% increase from November. MedPal AI leverages Google's Vertex AI to prepare for an expanded weight management market, especially after the US FDA approved Novo Nordisk's Wegovy pill as the first oral GLP-1 for weight loss. Meanwhile, Baidu plans an initial public offering for its AI chip unit, Kunlunxin, in Hong Kong, aiming to unlock value from its rapidly growing AI and cloud businesses. However, the rapid ascent of AI stocks also brings investor caution. Concerns are rising that many artificial intelligence companies, including Palantir, are currently overvalued. This sentiment suggests a careful approach to investment, even as the "pick-and-shovel" companies providing essential AI infrastructure, such as data storage providers like Western Digital, power suppliers, and cable producers, continue to see strong demand and significant gains. A global shortage of high-bandwidth memory (HBM) for AI servers is driving memory prices up, with a "supercycle" anticipated until 2027, further highlighting the foundational shifts in the tech market.

Key Takeaways

• Amazon's AI shopping assistant Rufus generated an extra $10 billion in merchandise sales in 2025 from over 250 million users.
• Evercore ISI projects Rufus and other AI tools could add $56 billion to Amazon's retail sales and $4 billion to ad revenue by 2028.
• Iren, a former Bitcoin miner, secured a $9.7 billion contract with Microsoft in October 2025 to build AI data centers, having secured 3 gigawatts of power.
• Cipher Mining signed a $5.5 billion deal with Amazon Web Services for 300 megawatts of capacity, focusing on AI infrastructure.
• MedPal AI, a UK digital health company, saw 16% December 2025 order growth and uses Google's Vertex AI to prepare for the expanded weight management market following FDA approval of Novo Nordisk's Wegovy pill.
• Baidu plans an IPO for its AI chip unit Kunlunxin in Hong Kong, holding a 59% stake, as its AI accelerator revenue grew 128% in Q3 2025.
• Investors express concern over high valuations for some AI stocks, citing Palantir and CrowdStrike as examples.
• The AI investment trend is shifting towards "pick-and-shovel" infrastructure companies, including data storage, power providers, and construction, moving beyond major chipmakers like Nvidia.
• A global supply shortage of high-bandwidth memory (HBM) for AI servers is causing memory prices to more than double, with a "supercycle" expected until 2027.
• Mid-cap AI stocks like Ondas Holdings and Argan, which builds AI data center infrastructure with a $3 billion backlog, are predicted to potentially outperform big tech by 2030.

Evercore ISI sees Amazon AI assistant Rufus boosting sales

Evercore ISI reaffirmed its Outperform rating for Amazon, setting a $335.00 price target. The firm believes Amazon's AI shopping assistant Rufus will significantly boost sales and revenue. In 2025, over 250 million customers used Rufus, leading to an extra $10 billion in merchandise sales. Customers using Rufus are 60% more likely to buy something. Analysts expect Rufus and other AI tools to add $56 billion to Amazon's retail sales and $4 billion to its ad revenue by 2028. Overall, AI commerce could increase Amazon's total revenue by $31 billion and operating income by $6.8 billion by 2028.

Evercore ISI sees Amazon AI assistant Rufus boosting sales

Evercore ISI reaffirmed its Outperform rating for Amazon, setting a $335.00 price target. The firm believes Amazon's AI shopping assistant Rufus will significantly boost sales and revenue. In 2025, over 250 million customers used Rufus, leading to an extra $10 billion in merchandise sales. Customers using Rufus are 60% more likely to buy something. Analysts expect Rufus and other AI tools to add $56 billion to Amazon's retail sales and $4 billion to its ad revenue by 2028. Overall, AI commerce could increase Amazon's total revenue by $31 billion and operating income by $6.8 billion by 2028.

Amazon AI assistant Rufus could drive $56 billion in sales

Amazon stock has seen a 170% increase over the past three years. Evercore ISI maintains an Outperform rating with a $335 price target, seeing a 48% upside. The firm highlights Amazon's AI shopping assistant Rufus, which reached 250 million users in 2025 and generated $10 billion in extra sales. Shoppers using Rufus are 60% more likely to complete purchases. Analysts project that Rufus and other AI tools could add $56 billion to Amazon's retail sales and $4 billion to its ad revenue by 2028. Overall, AI commerce features could boost Amazon's 2028 revenue by $31 billion and operating income by $6.8 billion.

Evercore analyst sees Amazon AI assistant Rufus boosting sales

A top Evercore analyst, Mahaney, is very positive about Amazon stock, expecting its AI shopping assistant Rufus to significantly boost sales. Mahaney notes that 250 million customers used Rufus last year, adding $10 billion in sales, and it increases purchase rates by 60%. He predicts Rufus and other AI commerce tools could add $56 billion to Amazon's retail sales and $4 billion to its ad revenue by 2028. Overall, these AI features could increase Amazon's 2028 total revenue by $31 billion and operating income by $6.8 billion. Wall Street analysts currently rate Amazon stock as a Strong Buy.

MedPal AI reports strong December growth and new FDA approval

MedPal AI plc, a UK digital health company, announced strong pharmacy operations for December 2025. The company processed 33,433 prescription orders, generating about £325,000 in sales, a 16% increase from November. This growth comes from its NHS contract and private weight loss service. Additionally, the US FDA approved Novo Nordisk's Wegovy pill on December 22, 2025, making it the first oral GLP-1 for weight loss. MedPal AI CEO Jason Drummond expects this oral medication to greatly expand the weight management market, and MedPal.clinic is ready to serve this growing demand using Google's Vertex AI.

MedPal AI sees 16 percent December order growth

MedPal AI PLC, a UK digital health company, reported a 16% increase in prescription orders processed in December compared to November. The company handled 33,433 orders, bringing in £325,000 in sales. CEO Jason Drummond expressed delight with this strong performance, even during the Christmas season. MedPal AI shares rose 5.0% to 5.25 pence in London. The company also highlighted the US FDA's approval of Novo Nordisk's Wegovy pill, the first oral GLP-1 for weight loss, which MedPal AI believes will transform the industry and expand its market.

Mid-cap AI stocks may beat big tech by 2030

Some mid-cap AI stocks are predicted to perform better than the "Magnificent Seven" by 2030. Cipher Mining, now focused on AI infrastructure, signed a $5.5 billion deal with Amazon Web Services for 300 megawatts of capacity. Drone maker Ondas Holdings aims for $36 million in 2025 revenue and expects to triple it to $110 million in 2026. Argan, which builds AI data center infrastructure, has a record $3 billion backlog and contracts for 6 gigawatts of power assets. These companies show strong growth potential in the expanding AI market.

Investors worry about high valuations for AI stocks

Investors are increasingly concerned that many artificial intelligence stocks are overpriced, posing a risk to the sector's future growth. While AI's potential is clear, the rapid rise in stock prices for many AI companies makes investors question if their current value is fair. Two examples of AI stocks with very high valuations are Palantir and CrowdStrike. Palantir, a data analytics company, and CrowdStrike, a cybersecurity leader, have both seen significant investor interest. This widespread concern suggests investors should be careful and closely check the value of AI companies.

Baidu plans IPO for AI chip unit Kunlunxin

Baidu plans to spin off its AI chip unit, Kunlunxin, through an initial public offering in Hong Kong. This move could greatly increase Baidu's overall value. Baidu's AI and cloud businesses are growing fast, with cloud revenue up 21% and AI accelerator revenue up 128% in Q3 2025. The IPO aims to unlock significant value from Kunlunxin, especially with strong demand for AI-related IPOs and China's focus on domestic chip production. Baidu holds a 59% stake in Kunlunxin, and its AI business is thriving with products like ERNIE and its own AI chips.

Iren stock triples as it powers AI data centers

Iren, a company that started as a Bitcoin miner, saw its stock more than triple in 2025. It is now focusing on providing data centers for artificial intelligence cloud services. Iren has secured thousands of megawatts of clean power to meet the high energy needs of future AI data centers. In October, the company signed a major $9.7 billion contract with Microsoft, confirming its ability to build these facilities on schedule. Iren has secured 3 gigawatts of power for its data center projects, making it a key partner as new data centers take years to build.

AI boom shifts to infrastructure and power stocks

The artificial intelligence investment trend is moving towards "pick-and-shovel" stocks, which are companies that build the infrastructure for AI. Cloud service providers are investing billions into new data centers, benefiting companies that supply essential components. In 2025, data storage companies like Sandisk, Western Digital, and Seagate saw huge gains. Power providers and cable producers such as Amphenol and Corning also performed well. Investors are now looking beyond major tech companies like Nvidia for growth and better stock values. Companies involved in data storage, construction, and power infrastructure are expected to continue thriving as the AI buildout continues.

Western Digital stock reacts to AI memory shortage

Western Digital Corp. shares saw a volatile day as investors reacted to the strong demand for AI infrastructure. The stock was down 0.9% at $186.00 after earlier gains. A Reuters report highlighted a global supply shortage, with chipmakers shifting production to high-bandwidth memory (HBM) for AI servers, which is reducing the supply of other memory products like flash. Some memory prices have more than doubled since last February, and analysts expect this "supercycle" to last until 2027. Western Digital, which sells data storage devices, is closely watched to see if AI spending will lead to higher prices for its high-capacity drives.

Sources

• Evercore ISI reaffirms Amazon stock rating, sees AI assistant Rufus boosting sales By Investing.com
• Evercore ISI reaffirms Amazon stock rating, sees AI assistant Rufus boosting sales By Investing.com
• Amazon (AMZN) Stock: AI Assistant Rufus Could Drive $56 Billion in Sales Growth by 2028
• Top Evercore Analyst Is Bullish on Amazon Stock (AMZN), Expects Rufus AI Assistant to Boost Sales
• REG - Medpal AI PLC
• Medpal AI delighted with Christmas trading as December orders rise 16%
• Prediction: These Mid-Cap AI Stocks Could Outperform the "Magnificent Seven" by 2030
• Investors Believe Overvaluation Is One of the Biggest Risks to the AI Story. Here Are 2 AI Stocks With the Frothiest Valuations.
• Baidu: AI Chip Unit IPO A Major Catalyst
• This Is One of the Best Artificial Intelligence (AI) Stocks to Hold for the Next 10 Years
• AI trade’s next leg is all about tech’s ‘pick-and-shovel’ stocks
• Western Digital (WDC) stock whipsaws as AI memory crunch drives storage trade