Nvidia and Palantir have a combined worth of $4.5 trillion, but Amazon could surpass that in five years, potentially giving shareholders a 100% upside. Wall Street expects Amazon’s earnings to grow at 18% annually, making its current valuation of 36 times earnings reasonable.
Amazon dominates e-commerce, ad tech, and cloud computing, positioning it for rapid growth in all three sectors. Online retail sales are projected to increase by 11% annually, ad tech by 14%, and cloud-computing by 20%, setting Amazon up for double-digit revenue growth through 2030.
Amazon’s use of artificial intelligence is enhancing profitability, with over 1,000 generative AI applications optimizing various aspects of its business. The company is also working on AI models for robotics, including humanoid robots that could automate delivery processes and even develop robotaxis.
Analysts believe Amazon’s AI and robotics investments will lead to greater profitability in the coming years, with potential cost savings in shipping and fulfillment. With a reasonable valuation relative to its earnings growth forecast, Amazon could reach a market value of $4.6 trillion by 2030, exceeding Palantir and Nvidia’s combined values today.
Read more at Nasdaq: Prediction: 1 AI Stock Will Be Worth More Than Nvidia and Palantir Technologies Combined by 2030