So Amazon's trading down 22% from its November peak and honestly, it looks like a solid opportunity to buy the dip right now. The market got spooked when they announced $200 billion in capex plans for 2026, which is way up from $131 billion last year. But if you actually look at what's driving this, it's not reckless spending — it's AWS expansion for AI infrastructure.

Here's what caught my attention. AWS just posted 24% revenue growth in Q4, and management is seeing massive demand for AI tools from both enterprise and government customers. The CEO mentioned that more of the top 500 US startups use AWS as their primary cloud provider than the next two combined. That kind of dominance doesn't happen by accident. The capex is basically Amazon saying they're all-in on maintaining that lead.

Beyond the AI angle, Amazon's competitive advantages are just ridiculous. The logistics network gives them cost advantages nobody else can match. AWS customers face brutal switching costs once they're integrated into the platform — moving your entire infrastructure would be a nightmare. Plus the marketplace has this network effect where more sellers attract more buyers, which attracts more sellers. It's a virtuous cycle.

What really makes this worth considering is the growth trajectory. Over the past decade, revenue jumped 570% and operating income surged 3,536%. Yeah, growth rates will normalize, but the company's riding multiple secular tailwinds — AI, cloud computing, e-commerce, digital ads. That's not going away.

And here's the kicker: you're looking at a P/E ratio of 28, which is near a 10-year low. For a company with this kind of durable growth profile, that's actually attractive. This could be a good time to buy the dip on Amazon if you're looking at longer-term holdings. The market overreacted to the capex announcement, but the fundamentals still look solid if you're willing to hold through the AI buildout cycle.