Amazon could potentially reach a $3 trillion market cap by 2026 due to AWS dominance.

From Nasdaq: 2025-05-20 04:56:00

Nine American companies are valued at $1 trillion or more, with only three in the $3 trillion club. Amazon (NASDAQ: AMZN) could join by 2026, operating the largest e-commerce and cloud platforms, and advancing in AI. With a $2.2 trillion market cap, investing now could yield a 36% return.

Amazon Web Services (AWS) dominates AI with cloud solutions, AI chips, and software. AWS’s Nova LLMs and AI-powered assistant Q set it apart. AWS’s $29.2 billion Q1 revenue and 63% of Amazon’s operating income solidify its importance, especially as e-commerce margins are lower.

Wall Street focuses on AWS as the key to Amazon’s valuation. AWS’s triple-digit AI revenue growth and high demand for data center capacity sustain profit margins. Amazon’s EPS growth outpaces competitors, potentially leading to a $3 trillion market cap by 2026.

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Disclosure: The author’s opinions may differ from Nasdaq, Inc. The Motley Fool recommends Amazon, Apple, Meta Platforms, Microsoft, and Nvidia, with John Mackey and Randi Zuckerberg on its board. Anthony Di Pizio has no positions in the mentioned stocks. The Motley Fool has disclosure policies.



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