In recent days Amazon (NASDAQ: AMZN) shares of the company hit a novel all-time high. In fact, Amazon’s long-term performance is downright needy spectacular. The rise in stock prices means that $1 invested in Amazon when it listed in 1997 is now worth more than $2,800.

Sure, still no dividends. However, I doubt that many shareholders will be bothered by this price augment.

In fact, they may prefer that Amazon continue to do what it has been doing with its spare cash: invest it to continue growing the business, rather than using it to fund dividends.

With Amazon stock recently hitting an all-time high, it may seem challenging to imagine that Amazon stock is a potential opportunity even now. But I think that may be the case.

The lens matters

This depends partly on your approach to investing.

From a tiny perspective, a price-to-earnings ratio of 36 may not seem low. (Then again, in today’s market, that doesn’t seem outrageously high for a fast-growing company with huge competitive advantages).

However, as an investor, I am not concerned about short-termism when deciding to build my portfolio. Instead, I take a long-term approach to investing.

I think that in the long run, Amazon can continue to grow stronger.

Building on your strengths

Amazon has been very creative for many years. By experimenting with novel businesses, it was able to expand its existing competitive advantage.

She was also not afraid to reveal the secret about projects that she considered less promising than expected. I see this as a sign of confident and decisive management.

As such, its online retail and marketplace has expanded and added many additional elements along the way, from brick-and-mortar stores to its own cargo airline.

This alone could mean that the historic heart of Amazon’s business could grow strongly in the long term. Economies of scale and a powerful position in the industry may assist it grow profits faster than revenues.

Meanwhile, from a long-term perspective, the bigger story may be about AWS (the elderly Amazon Web Services).

Artificial intelligence is rocket fuel for an already brilliant business

Before the AI ​​gold rush, AWS was already a successful, high-growth company. That hasn’t changed, and the server hosting business remains huge.

However, the demand for artificial intelligence has taken this to a whole novel level.

How large?

Put it this way, Amazon’s operating income was $17.4 billion in the third quarter. Of this, AWS was responsible for $11.4 billion. This means that about two-thirds of Amazon’s total operating income last quarter came from AWS alone.

Excitement about AWS’s growth potential explains why Amazon’s stock price is at an all-time high. AWS sales increased by a fifth year-over-year.

Can Amazon’s AI-powered growth sustain?

The medium to long-term picture for AI hosting demand remains unclear. I also see a risk that competitors may try to gain market share by competing on price, which could negatively impact AWS’s profitability.

Meanwhile, Amazon’s retail business faces ongoing risks from uncertainty over U.S. tariff rates.

However, from a long-term perspective, given Amazon’s competitive advantages, including its customer base and proven model, I believe Amazon’s current stock price can be considered a bargain. I believe this is a stock that should be considered by investors thinking about a long-term perspective.