In the next 12 months, analysts predict Amazon and Alphabet will reach a market value of $3 trillion each, driven by artificial intelligence growth in e-commerce, digital advertising, and cloud computing. Amazon’s stock has a 34% upside potential, while Alphabet’s stock has a 37% upside potential, with analysts expecting strong earnings growth for both companies.

Amazon is a dominant player in e-commerce, ad tech, and cloud computing, with expected annual growth rates of 11%, 14%, and 20%, respectively. The company’s use of artificial intelligence tools is enhancing profitability and efficiency across its various businesses, positioning it for continued success despite potential risks like tariffs.

Alphabet leads in ad tech and cloud services, with projected annual growth rates of 14% and 20%. The company’s focus on generative AI tools in Google Search is driving increased user engagement and commercial search volume. While antitrust concerns pose a risk, Alphabet’s expertise in AI infrastructure and machine learning platforms could fuel market share gains in cloud services.

Investors are advised to consider the potential upside of investing in Amazon and Alphabet, as both companies are well-positioned in high-growth industries and have strong earnings growth prospects. Analysts recommend looking beyond the short-term stock performance to the long-term value these tech giants offer to shareholders.

Read more at Nasdaq: 2 Artificial Intelligence (AI) Stocks to Buy Before They Surge to $3 Trillion, According to Select Wall Street Analysts