Amazon (AMZN, Financial) is emerging as a formidable competitor in the robotics and artificial intelligence sectors, potentially offering a more stable investment alternative to Tesla (TSLA). Analysts highlight Tesla's high valuation and automotive challenges as deterrents for some investors, compounded by its political engagements and competition with Chinese electric vehicle makers.
In contrast, Amazon has integrated over 750,000 robots into its logistics network, including autonomous systems like Proteus and robotic arms such as Sparrow and Cardinal, enhancing operational efficiency. Additionally, Amazon is expanding its AI capabilities through AWS and developing custom chips with Annapurna Labs. Its Zoox unit is set to launch robotaxi services in Las Vegas, with plans to expand to San Francisco.
Amazon's valuation appears more favorable, with a projected price-to-earnings ratio of 35 times its expected 2025 earnings, potentially dropping to 14 times by 2030 as profits grow. In comparison, Tesla's forward P/E ratio is significantly higher at 172 times for 2025.
Analysts from Morgan Stanley and Goldman Sachs foresee significant growth in the humanoid robot market, with Amazon and Tesla positioned as key leaders. Bank of America estimates Amazon could save $7.1 billion annually by 2032 through expanded robotics and AI use.
Recently, Amazon's stock price rebounded to around $215, following a dip to the $160 range in April. Its 50-day moving average is $196, and the 200-day average is approximately $203. Analysts suggest a drop below $200 could present a buying opportunity for long-term investors.
