Amazon’s embrace of artificial intelligence has the potential to transform the notoriously difficult grocery store into a profits. The grocery store has long been considered a low -margin company, so for a business like Amazon, it has offered an avenue for sales growth but a limited call for profits. Indeed, the success of Amazon Selli Sell Everyday Essentials has, in a recent past, was a double -edged sword with the way in which he has pressed profits. And yet it is a difficult market to ignore. In the United States, buyers are increasingly turning to the Internet to order fresh food and other essential everyday elements, making consumption products one of the fastest online purchase categories, JPMorgan said in a note to customers on Monday. While packed consumer products, including the grocery store, represented around 43% of us, retail sales adjusted last year, only about 15% of them took place online – a gap that JPMorgan called the “greatest growth opportunity” of Amazon. This is where Amazon’s aggressive investments in AI come into play, which gives the club reasons of optimism. While Amazon moves further in the online grocery store and the essentials, the company should be able to exploit AI to make eggs, strawberries and paper towels more profitable than this would have been possible before. The icing on the top for investors: buyers will have more reasons to stay at a bonus. Amazon commands a share of 23% of American online grocery sales, which is second behind 29% of Walmart, but before the 16% of Instacart, estimated JPMorgan in its note on Monday. In 2024, Amazon delivered more than 2 billion grocery stores and essential articles of households in the United States on the same day or overnight, an increase of 50% from one year to the next, the company said in a blog article this month. According to CEO Andy Jassy, Amazon’s everyday activities in the United States increased more than twice as quickly than all other categories in the first quarter of 2025, representing one in three units sold in the country. “I think that the way people buy grocery stores will continue to evolve over time. I therefore continue to be very optimistic for our grocery store. It is important today and has a chance to be much larger in the future,” said Jassy at the annual Amazon shareholder meeting last month. The wide selection of Amazon – three million offers of grocery and cleaning units for the bonus members, eclipping the 30,000 elements of a typical supermarket, according to JPMorgan – combined with its fast delivery capacities are among its competitive advantages. He relies on them. Tuesday, Amazon announced that it increased delivery the same day and the next day to tens of millions of American customers in more than 4,000 small cities, cities and rural communities by the end of 2025. “One of the biggest advantages of this expansion is the option for customers to buy the essential elements of Amazon,” said Amazon in a press release. In the 1,000 similar communities where this service was already available, the company said that more than 90% of the 50 main items bought for delivery the same day in the Essentials of everyday category. Amazon also experimented with the addition of more perishable food products to delivery installations the same day that serves its traditional retail business, said Jassy at the annual meeting. “Now, when you get the items you get the same day, you can add perishable such as eggs or milk or bread or yogurt, and this experience really resonates with customers,” said the CEO. “We see a very important adoption. And I am optimistic when we deploy this to many more of our installations of the same day which will lead to more of our customers to buy us perishable foodstuffs.” The data clearly indicates that the members prevails – whether in urban or rural areas – like to have this type of items delivered to their door by Amazon. This augurs well for the company by capitalizing on the high growth opportunity that JPMorgan has identified. For investors, the exciting part is that Amazon’s progress in AI has the potential to make these deliveries much more profitable in the future, ensuring that the ease of ordering recipe ingredients and dish soap is not a brake on the results. Technology can also improve the overall purchasing experience, which has led to more dollars spent on the Amazon market. Amazon has already integrated AI into its logistics network, deployment of more than 750,000 robots since 2012 to rationalize the realization. The company uses AI for demand forecasting tools, stocks and improving the effectiveness of robotics, Jassy wrote in a memo last week; He said that the three use cases have accelerated delivery times and reduces costs. Meanwhile, on the application and the website, its IA generator store assistant called Rufus improves product discovery, while sellers have tools to help write product pages, among others. There are considerable levers to shoot the future, especially on delivery. His autonomous car company Zoox could one day automate his fleet of delivery vehicles, and media reports also indicate that he is testing humanoid robots for the delivery of packaging, the signaling of new efficiency gains could be on the horizon. And at the level of the company level, Jassy said in the note last week that the intermediary of generative intermediary would reduce its business workforce in the years to come. In the eyes of the club, Amazon has a technological advantage over competitors like Walmart, the largest retailer in the world, making his grocery store and his essential everyday elements grow more convincing, said Zev Fima, portfolio analyst for the club. For its part, the vast networks of Physical stores in Walmart in the United States were an advantage for its online grocery business. Admittedly, the uncertain economy could weigh on short -term consumption expenses, which has an impact on online purchases. JPMorgan estimates that the growth of American electronic commerce will decelerate in 2025 to 5.3% on an annual basis compared to the growth of 7.4% of last year. However, Amazon has already thrown a solid base to continue growing sales over time. Since the acquisition of Whole Foods in 2017, Amazon has increased its sales by more than 40%. Even to the exclusion of Whole Foods and Amazon Fresh Fresh Brick and Mortar stores, the company said that it had total grocery sales north of $ 100 billion last year, making it one of the largest grocers in the United States in the future, JPMorgan estimates that the trend to highly online purchases is far from the end of 2026. category of grocery stores, in particular. Analysts have an outperformance rating equivalent to the purchase on Amazon’s actions, a price target of $ 240 per share and a designation of “best idea”. For investors like us, we remain excited by the efforts of the Amazon grocery store. Even modest margin improvements in this company of the weekly order at high volume could generate significant profits. In addition, a more efficient and practical grocery service could make the premium subscription sticker, which potentially justifies future price increases. By combining the scale, high technology and automation, Amazon transforms a historically lower margin company into a strategic producer. Like JPMorgan, we also have a price target of $ 240 and a note 1 equivalent to the purchase on Amazon’s shares. (Jim Cramer’s Charitable Trust is long amzn. See here for a full list of actions.) As abonten at the CNBC Investing Club with Jim Cramer, you will receive a commercial alert before Jim is doing a business. Jim is waiting for 45 minutes after sending a commercial alert before buying or selling a stock in the portfolio of his charitable trust. If Jim spoke of a stock on CNBC TV, he waits 72 hours after issuing the commercial alert before running the trade. The above information of investment clubs is subject to our terms and conditions and our privacy policies, as well as our warning. No obligation or fiduciary duty exists, or is created, due to your reception of the information provided in relation to the investment club. 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