Nvidia has achieved a $5 trillion market cap, becoming the first company to do so. Amazon, though not the next largest company, has high growth potential due to massive opportunities and a reasonable valuation. With strong momentum in various sectors like AWS, advertising, and AI services, Amazon could be the next $5 trillion company.

Amazon recently announced a significant increase in capital expenditures, receiving positive investor reaction. With a forecasted $2.4 trillion global cloud computing market by 2030, Amazon’s continued dominance in this sector could lead to significant returns on its investments. Moreover, the e-commerce and advertising businesses still have untapped potential for growth.

Despite being valued at $2.6 trillion currently, Amazon shows strong momentum and reasonable valuation. Trading at 37 times forward earnings, Amazon has room for further expansion and could reach a $5 trillion market cap within the next three years, challenging other tech giants like Apple, Microsoft, and Alphabet.

Investors are advised to consider other top stocks identified by The Motley Fool Stock Advisor team, which may offer significant returns in the future. While Amazon is not on this list, historical data shows the potential for substantial gains with the right investments. Joining Stock Advisor could provide access to valuable insights and top stock picks.

Read more at Nasdaq: Nvidia Just Hit a $5 Trillion Market Cap — and I Predict This Company Will Join It Within 3 Years