Amazon.com, Inc. (NASDAQ:AMZN): GitLab Announces That It Signed a 3-year SCA with AWS

Amazon.com, Inc. (NASDAQ:AMZN) is one of the Best Cloud Computing Stocks to Invest in Now. On August 6, GitLab Inc. announced that it has signed a 3-year strategic collaboration agreement (SCA) with Amazon.com, Inc. (NASDAQ:AMZN)’s AWS. The agreement expands access to GitLab Dedicated, which is a single-tenant offering enabling companies in highly regulated industries, as well as the public sector, to leverage cloud infrastructure while, at the same time, catering to the complex compliance requirements, such as data residency, isolation, and private networking.

Amazon.com, Inc. (NASDAQ:AMZN): GitLab Announces That It Signed a 3-year SCA with AWS

A customer entering an internet retail store, illustrating the convenience of online shopping.

In Q2 2025, Amazon.com, Inc. (NASDAQ:AMZN)’s net sales rose 13% to $167.7 billion as compared to $148.0 billion in Q2 2024. AWS grew 17.5% YoY, with more than $123 billion annualized revenue run rate. Amidst a rapidly evolving world of generative AI, AWS has been building a large, fast-growing triple-digit YoY percentage multibillion-dollar business. Amazon.com, Inc. (NASDAQ:AMZN) expects that AWS operating margins might fluctuate over time, mainly because of the level of investments being made. There are expectations to continue the investment momentum in chips, data centers, and power in a bid to pursue the significant opportunity offered by generative AI.

Investment management company Vulcan Value Partners released its Q2 2025 investor letter. Here is what the fund said:

Amazon.com, Inc. (NASDAQ:AMZN) is a dominant, world-class company with powerful secular tailwinds in place including its e-commerce penetration, digital advertising growth, and the transition to the cloud. Amazon reported strong results during the f irst quarter. The company’s stock rebounded during the second quarter.”

While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.