Amazon’s AI Revolution: How Rufus is Transforming Shopping
Amazon has always been ahead of the curve in redefining e-commerce, and its AI-powered shopping assistant, Rufus, is no exception. With its introduction in 2025, Rufus has quickly gained popularity, amassing over 250 million users in a single year. The results speak for themselves: a staggering $10 billion in additional gross merchandise value (GMV) and a 60% increase in purchase completions among users.
Rufus and Revenue Growth
Amazon’s ability to leverage artificial intelligence for personalized customer experiences has allowed it to outpace market growth. Analysts project that AI-commerce features like Rufus could add $31 billion in revenue and $6.8 billion in operating income by 2028. As of now, Amazon stock has already risen by 170% in the past three years, dwarfing the S&P 500’s 80% gain during the same time.
Why Rufus Matters
Rufus isn’t just an add-on; it’s a game-changer for Amazon’s ecosystem. Beyond basic shopping assistance, Rufus integrates advanced features like AutoBuy and Predictive Bundling (currently in development), which further enhance the shopping experience. Importantly, this AI-driven tool not only increases conversion rates but also benefits Amazon’s advertising revenue. According to Evercore ISI, Rufus could contribute an additional $4 billion to Amazon’s ad revenue by 2028, equating to a 3% boost.
Prime Membership and AWS Stalwarts
Amazon’s ecosystem is vast and interconnected, with Prime membership and AWS (Amazon Web Services) acting as twin engines of growth. AWS controls an impressive 32% of the global cloud market and accounts for 60% of Amazon’s operating profit. Meanwhile, Prime membership — now exceeding 240 million paid subscribers — serves as a retention tool by locking customers into Amazon’s services with perks like fast shipping and competitive pricing. Together, they bolster Amazon’s operating margin, which expanded from 2.4% in 2022 to 10.9% in 2025.
Is Amazon Stock Undervalued?
Despite its recent surge, Amazon stock may still be undervalued. With projections of 12% annual revenue growth and 20% earnings per share (EPS) growth through 2027, analysts remain bullish. The stock trades at 29 times its 2026 earnings, but a PEG ratio of 0.62 suggests it offers immense growth potential relative to its valuation.
Invest in Amazon Now
For investors looking for big opportunities in technology and AI, Amazon represents a compelling case. With continued growth in areas like Rufus, AWS, and advertising revenue, the company is poised to deliver returns that could outpace broader market performance.
If you’re considering transforming your investment portfolio or want to learn more about e-commerce advancements, check out Amazon’s latest offerings.
