Morgan Stanley's out with a new note today calling Amazon an underappreciated Gen AI winner,

citing its investments in automating $200 billion in logistics costs.

Those dollars could have a major impact for Amazon's core e-commerce business.

Our Kate Rooney's here with more for today's tech check.

They have been active this week, Kate.

Yeah, Carl, some news this week.

But from the beginning of the big tech AI race, if you think about it, Amazon's CEO,

Andy Jassy has really argued that this technology is going to help their business internally.

He's said at certain points they're not just competing here because it's cool and because it's

the newest buzzword.

We are seeing some more proof of that strategy as AI now emerges as a way to keep

cost down within Amazon's giant e-commerce business. So in part, they're using robots in Silicon

Valley. This is often known as physical AI. And then they're also streamlining that supply chain.

Amazon does need this more than ever right now with the threat of tariffs and higher prices.

The trade war has weighed on shares, negative on the year, really lingering in the middle of the Mag 7 lately.

This week, Amazon rolled out some incremental AI updates.

One new model was meant to speed up delivery.

Another is to upgrade its fleet of robots, which in turn helps automate warehouses and keep

costs down. So the key here for investors is margins. Right now, Amazon's business has roughly

11% operating margins for e-commerce. It's about half of that, but had gone negative if you

think back to COVID, and those margins have since recovered. Gene Munster, for example, over Deepwater, thinks Amazon could get to 15% operating margins if all of these AI efforts

end up paying off especially in robotics. He compared it really to Tesla's strategy. Munster

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