<div id="readability-page-1">The &#34;Magnificent Seven&#34; are giants of the stock market, and among them, Apple (AAPL 2.22%) and Amazon (AMZN -1.59%) stand out as preeminent consumer companies. Both have delivered high-tech advances over the years. But if you had to choose between them, would Apple or Amazon be the better investment for the long run? A deciding factor between future prosperity or obsolescence could lie in how each tackles the latest technological innovation: artificial intelligence (AI). Amazon CEO Andy Jassy sees the rise of AI as a watershed moment: &#34;Generative AI is going to reinvent virtually every customer experience we know, and enable altogether new ones about which we've only fantasized.&#34; Here's an examination of Apple and Amazon's approaches to this transformative technology, in order to identify the superior long-term investment. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjMxMzkvc2hvcHBpbmctb25saW5lLXdpdGgtY3JlZGl0LWNhcmQtYW5kLWxhcHRvcF9nZXR0eWltYWdlcy0xMDgzNDkzODA4LTEyMDB4Nzg4LWJhZWZhNTIucG5nJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="459" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjMxMzkvc2hvcHBpbmctb25saW5lLXdpdGgtY3JlZGl0LWNhcmQtYW5kLWxhcHRvcF9nZXR0eWltYWdlcy0xMDgzNDkzODA4LTEyMDB4Nzg4LWJhZWZhNTIucG5nJnc9NzAw"/>Image source: Getty Images. </div> <h2>Apple's approach to AI</h2> Apple seemed to take an early lead in AI with the arrival of digital assistant Siri on the iPhone in 2011. Since then, the company has chosen to partner rather than invest in the costly infrastructure needed for AI systems. For instance, Apple used Alphabet-owned Google's custom semiconductor chips to train its AI software, and integrated OpenAI's ChatGPT to supplement Siri. As a result, Apple has been accused of falling behind its rivals in the AI race. The accusations have some merit. At Apple's Worldwide Developers Conference in June, the company announced its latest AI updates, such as real-time translation services. Its new AI capabilities were underwhelming, while meaningful updates to its proprietary Apple Intelligence aren't expected until 2026. However, AI's evolution is a marathon, not a sprint. Industry forecasts estimate the AI market will expand from $244 billion in 2025 to $1 trillion by 2031. There's time for Apple to capitalize on the sector's growth, so the company's slow AI progress isn't a death knell. Moreover, Apple could acquire an AI business to give it the ability to rapidly catch up to competitors. After all, Siri was developed by another company before Apple bought the technology. In addition, Apple's devoted customer base is a strength here. Loyal consumers are likely to wait for more robust AI features. The company's ability to keep customers coming back for more translated into sales of its iconic iPhone remaining above $200 billion for the past three years. Despite sparse AI features, Apple looks likely to repeat the feat: iPhone sales in its current fiscal year's first half, which ended March 29, totaled $116 billion compared to the prior year's $115.7 billion. <h2>Amazon's AI achievements</h2> Amazon's AI approach has been to go all in on the technology. In the first quarter of 2025, the company spent $24.3 billion on capital expenditures (capex), primarily to build up tech infrastructure. This included its Amazon Web Services (AWS), the global leader in cloud computing. Contrast this to Apple's fiscal Q2 capex of about $6 billion. Those AI investments led to AWS sales growing 17% year over year to $29.3 billion. But the long-term payoff is poised to be far bigger, given Amazon's slew of AI enhancements. This year the company released Alexa+, the next evolution of Siri's rival. Amazon also uses AI to manage a fleet of more than 750,000 robot workers in its warehouses, and to drive the vehicles for its new robotaxi service, Zoox, which arrives in select cities this year. Amazon's AI capabilities help it smartly adjust prices across its vast universe of products, taking into account numerous factors from inventory levels to individual shopper behaviors. This helped Amazon grow Q1 sales by 9% year over year to $155.7 billion. That's just the start. Amazon sees AI as a game changer, and Andy Jassy said: &#34;That's why there are more than 1,000 GenAI applications being built across Amazon.&#34; <h2>Making the call between Apple and Amazon</h2> Apple and Amazon both have unique strengths. But does the disparity in their AI abilities tilt the odds in one company's favor? I believe Apple has the potential not only to catch up, but also to deliver groundbreaking products, just as the introduction of its iPhone proved revolutionary for mobile devices. That said, Amazon is supplying AI capabilities at astonishing speed. As a result, Amazon isn't just improving services for its core e-commerce business, it's tackling entirely new industries, as exemplified by Zoox. But one other factor to consider is share-price valuation. Here's a look at Apple and Amazon's price-to-earnings (P/E) ratios: <img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/469b5ad36b9c91067bd70c8c697b278c.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="456" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/469b5ad36b9c91067bd70c8c697b278c.png"/> Data by YCharts. The chart reveals that Amazon's P/E multiple was substantially higher a year ago, but has since dropped, particularly after President Donald Trump's April tariff announcements caused the broader stock market to plunge. Now, it's not too far above Apple's P/E, and given Amazon's AI investments, its higher valuation is arguably warranted. Taking this and its impressive AI advancements into account, these factors make Amazon the best stock to buy right now over Apple. </div>

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The article compares Apple and Amazon as potential long-term investments, focusing on their approaches to artificial intelligence (AI). Apple has historically partnered for AI advancements, leading to criticisms of falling behind competitors, while Amazon has heavily invested in AI infrastructure, resulting in significant growth in its cloud services. Despite Apple's slower progress, its loyal customer base and potential for future AI acquisitions are noted. The analysis also considers share-price valuations, indicating that Amazon's higher P/E ratio may be justified by its aggressive AI strategy.

- The article compares Apple and Amazon as long-term investment options, focusing on their approaches to artificial intelligence (AI).  
- Apple has been criticized for its slow AI progress, while Amazon has heavily invested in AI infrastructure, leading to significant growth in its services.  
- Ultimately, the analysis suggests that Amazon's rapid advancements in AI and its current valuation make it the better investment choice over Apple.

Best Stock to Buy Right Now: Apple vs. Amazon