In a year of market volatility and a subsequent Nasdaq Composite surge fueled by artificial intelligence (AI) excitement, Amazon (NASDAQ: AMZN) has emerged as a potential leader in the AI space. Following strategic moves and partnerships, the company is primed to capitalize on the next wave of growth in AI.

The past year has seen Amazon quietly making significant inroads in the AI sector, despite initial perceptions that it was lagging behind its tech giant counterparts. Notably, Amazon's investment in Anthropic, backed by Alphabet, has grabbed headlines and highlighted the company's commitment to AI advancement.

Anthropic's collaboration with Amazon is largely centered around their utilization of Amazon Web Services (AWS) as the primary cloud provider. Additionally, Anthropic will leverage Amazon's own Trainium and Inferentia chips to train future generative AI models. This partnership not only breathes new life into AWS, whose revenue growth had slowed in recent quarters, but also paves the way for a plethora of groundbreaking AI applications.

Furthermore, Amazon's foray into designing its own AI chips provides an intriguing opportunity in the AI semiconductor market which is currently dominated by Nvidia and Advanced Micro Devices. This move positions Amazon to have greater control over its AI infrastructure, further bolstering its potential as an AI leader.

Investors may be underestimating the significance of Amazon's alliance with Anthropic and may view competition from Microsoft and Alphabet as insurmountable. However, the evolving nature of AWS and its increasing focus on generative AI suggest brighter prospects for Amazon's future growth in the AI sector.

When evaluating Amazon's progress, it is noteworthy that the company's price-to-sales (P/S) multiple has remained relatively stagnant despite its significant evolution over the past decade. This could be indicative of investors' underappreciation of Amazon's AI prospects and their concerns about competing against industry giants. However, given AWS's pivotal role in AI, which is poised to drive a shift towards cloud-based protocols, Amazon's long-term prospects in the AI field are highly encouraging.

Although Amazon may not be experiencing explosive growth in AI just yet, the company's strategic positioning cannot be overlooked. With the potential for the Nasdaq to soar in 2024, investors should consider capitalizing on this tempting opportunity to gradually acquire Amazon shares through dollar-cost averaging.

While it is crucial to consider different perspectives before making investment decisions, it's worth noting that The Motley Fool Stock Advisor analyst team did not include Amazon among their top 10 stock picks for investors. Their chosen stocks are projected to yield substantial returns in the coming years. However, the Stock Advisor service has historically outperformed the S&P 500, providing investors with valuable insights and guidance for success.

As Amazon further cements its position in the AI sector and hones its competitive edge, it remains to be seen whether the company will realize its full potential in this rapidly evolving landscape. However, history has shown that the Nasdaq has the resilience to bounce back, making the prospects of a prosperous 2024 increasingly likely.